Make Money From Your Residential Property Investment by Flipping It
One of the most time-tested ways to make money from your residential property investment is by flipping it.
To flip a property simply means to resell it quickly rather than holding on to it as a long-term investment or as a rental.
The most common form of flipping, and the one most people are probably familiar with, is to buy a property 'that needs some work', fix it up and then resell it to a residential buyer.
The challenge comes in locating bargain properties and in estimating just how much work needs to be done before the property is in any shape to be resold.
Of course, you can also sell the property 'as is' to a buyer willing to fix it up himself in exchange for a lower purchase price.
In this case, the challenge is in buying the property cheap enough that you can sell it for below market price and still make a profit.
But you don't actually need to own a distressed property to make a profit from it.
Many people actually have made a career of locating such bargain properties and selling the information to investors for a fee.
These people are known as bird dogs, and can earn as much as five hundred to a thousand dollars for every property they locate for an investor.
Many of these 'bird dogs' eventually move up and work for themselves once they have the cash to buy distressed properties.
Lately, however, the trend in flipping residential property investment is to make a short sale deal with a distressed investor, and in a simultaneous close, resell it to a buyer at the same time.
You would effectively be acting as a middleman between the seller and the buyer, and you take your cash profit from the difference between the selling and the buying price.
In order to succeed in flipping, you will have to build an investor list of people who buy houses and to whom you can sell your investment properties.
There are several ways you can build your list.
One is to attend foreclosure auctions where you can network with buyers.
Another is to join business groups and attend their luncheons and meetings, since this is where you can meet potential investors.
If you have a relationship with a real estate broker, you can also ask him to look up local records for you.
The names of serious investors will appear repeatedly on the title records since they buy a lot of houses.
You will also need to eventually find private capital to fund your real estate deals.
It is not that difficult to find funding capital; there are many disgruntled investors who have pulled out of the stock market for instance, and who are looking for new investment opportunities.
You just have to network; once you've found them, it's easy to convince them to invest.
After all, residential property investment is safer than investing in stocks or bonds; people will always need shelter.
And if you stick to the fundamentals of flipping real estate, you'll always be able to make money no matter what the market conditions are.
To flip a property simply means to resell it quickly rather than holding on to it as a long-term investment or as a rental.
The most common form of flipping, and the one most people are probably familiar with, is to buy a property 'that needs some work', fix it up and then resell it to a residential buyer.
The challenge comes in locating bargain properties and in estimating just how much work needs to be done before the property is in any shape to be resold.
Of course, you can also sell the property 'as is' to a buyer willing to fix it up himself in exchange for a lower purchase price.
In this case, the challenge is in buying the property cheap enough that you can sell it for below market price and still make a profit.
But you don't actually need to own a distressed property to make a profit from it.
Many people actually have made a career of locating such bargain properties and selling the information to investors for a fee.
These people are known as bird dogs, and can earn as much as five hundred to a thousand dollars for every property they locate for an investor.
Many of these 'bird dogs' eventually move up and work for themselves once they have the cash to buy distressed properties.
Lately, however, the trend in flipping residential property investment is to make a short sale deal with a distressed investor, and in a simultaneous close, resell it to a buyer at the same time.
You would effectively be acting as a middleman between the seller and the buyer, and you take your cash profit from the difference between the selling and the buying price.
In order to succeed in flipping, you will have to build an investor list of people who buy houses and to whom you can sell your investment properties.
There are several ways you can build your list.
One is to attend foreclosure auctions where you can network with buyers.
Another is to join business groups and attend their luncheons and meetings, since this is where you can meet potential investors.
If you have a relationship with a real estate broker, you can also ask him to look up local records for you.
The names of serious investors will appear repeatedly on the title records since they buy a lot of houses.
You will also need to eventually find private capital to fund your real estate deals.
It is not that difficult to find funding capital; there are many disgruntled investors who have pulled out of the stock market for instance, and who are looking for new investment opportunities.
You just have to network; once you've found them, it's easy to convince them to invest.
After all, residential property investment is safer than investing in stocks or bonds; people will always need shelter.
And if you stick to the fundamentals of flipping real estate, you'll always be able to make money no matter what the market conditions are.