The Basics Of Flipping Property
March 8, 2014Flipping property is the Hot Ticket in real estate businesses these days. Everywhere you look you will see people all over social media and the TV sharing tips and showing themselves off as experts in the field or advertising their renovated homes offering amazing deals, all this hype is actually reinforcing the trend and making even more people get into the flipping property business .
Elaborating The Main Concept
What is Flipping Property basically, talking abour flips a very successful internet meme “table flip Guy†comes to mind, Flipping Houses actually comes kind of close to the concept ironically enough.
Simply Put, Fipping Houses means buying a property, mostly a distressed property, repairing and renovating it, hence the term flip, and reselling it instantly to earn greater profits,.
People get attracted to the flipping property business due to its ‘get rich quick’ concept. However, the flipping property business requires an eagle eye to spot trends in the real estate business, the Expertise to spot a great deal, the  professional experience to renovate it in Budget , and the ability to pitch the property at just the right time to make a Killer Deal.
Basic 10 Steps of Flipping Property Business
1. Understand the value of the property in the flipping business.
In the real estate businesse, the sale price of a property depends on a variety of factors but generally as a rule of thumb Commercial properties like markets, offices, rental houses and apartments and properties close to town are always intelligent investments for resale purposes.
2. Don’t Kill off your basic income source.
Don’t quit your day job while you are planning to flip, keeping your current job is highly recommended. Your office job will be separate from your property flipping business, understand that you might not become a success overnight.
3. Check and maintain your credit score.
Buy a shopping card from some big departmental store and shop your items from there. Do the same with your credit cards also. However, maintain a credit score of 30% at a time.
4. Start research.
Prepare your mind for owning a property. Reach out to the real estate agents and get their advice with respect to your bank and credit status and your desire of flipping property, Buy the home you are living in as your intial investment ( if you live on rent )
5. Decorate your home.
If you already owned your home proceed directly to this stop, Try to spend as less as possible on the renovation.
Set the new sale rates of your home, which should be at least 10% higher than your buying price, if you recently bought or if you have owned for a long time, check with the market rates and adjust accordingly.
Remember to invest in renovations after your plan out your sale value, and don’t go below your asking price no matter what happens.
6. Search a new home,
While you are looking for a buyer for your current home look for a new home which should be a little more expensive than your old/present home, try to adjust your buying budget in such a way that you can sell off your old, and comfortable buy the new home with enough money to spare to plan for your next flip
Buy the home after selling your old home and repeat the process every two months.
7. The Two Year Plan.
Keep going at this buying and selling trend for the next two years, this is the make or break time , try not to make any bad deals, and make sure you make a name for yourselves, look for referrals for buyers from your previous buyers and keep building up your reputation as a honest broker, this will go a long way into getting you established.
Being in the market for at least 2 years will bring you at least a handful of really great deals that will give you a lot of money, save up and invest accordingly and plan for the next phase of your flipping evolution.
8. Search commercial properties,
which can be rental apartments and office towers etc, all these properties are valuable flip fodder, with the experience gained from residential deals, enter the commercial market, and find commercial properties to work on, unlearn your old habits of working in residential, do fresh research, learn how to spot market trends, make concacts that help you sniff out potential investors or buyers, it’s more of a contact’s game when you come to this level.
Success in commercial properties depends on both exposure, and a level of integration into the market that helps filter the right deals to you at the right time in order to make exponential profits.
9. Invest in commercial properties
Once you start investing in commercial properties you will have gotten the hang of flipping to a great degree, at this point you could give up your day job and start working full time in investing on commercial properties.
Some Decent Advice
Flipping property business is where’s it’s at these days, this is where the money is, or so everyone would have you believe, as a matter of fact, flipping is not that simple, and it also does not make you rich overnight. It requires hard work and professional experience like any other business, although amount of hard work is a bit less than other businesses and chances for risk are pretty much calculated if you know how to work your numbers, which is what makes it one of the few businesses that can deliver a steep incline for growth, provided the markets don’t fluctuate all that much.
Before getting into the flipping property business, one should consider one’s own personal Capabilities and align one’s skills with those required in flipping property, and also check personal contacts and especially keep in touch with real estate agents, and secure oneself from bankruptcy.