Dabbling in Real Estate is an expensive proposition. Several key factors can make or break your investment. We all know “location, location, location” but many hours of planning and research are involved to determine the long-term profit and loss and what the investor will NET at the end.
House flipping has become the day trading since the first decades of the 2000s. But in the rush to make a profit, far too many overlook the basics and end up failing. Let me help you!
Paying cash eliminates costly loan interest and is quite attractive to sellers as it eliminates lending condition requirements and expedites closing time.
It’s a good start but even then, there are property holding costs, such as taxes and utilities. Renovation costs must also be factored in.
If you plan to fix the house up and sell it for a profit, the sale price must exceed the combined cost of acquisition, the cost of holding the property and the cost of renovations.
Also, don’t forget about capital gains taxes, which can chip away at your profit.
SWEAT EQUITY?
The real money in house flipping comes from sweat equity. If you’re handy with a hammer, enjoy laying carpet, can hang drywall, roof a house and install a kitchen sink, you’ve got the skills to flip a house. On the other hand, if you’ve got to pay a professional to do all of this work, the odds of making a profit on your investment will be dramatically reduced. Renovating and flipping houses is a time-consuming business venture. It can take months to find and buy the right property. Once you own the house, you’ll need to invest time to fix it up and be sure the property complies with applicable building codes.
PUT MY KNOWLEDGE TO WORK FOR YOU!
To be successful, you need to be able to pick the right property, in the right location, at the right price. In a neighborhood of $100,000 homes, do you really expect to buy at $60,000 and sell at $500,000? The market is far too efficient for that to occur on a frequent basis. Even if you get the deal of a lifetime, you need to know which renovations to make and which to skip, before your project becomes a money pit! Experienced in the construction field and a licensed Real Estate Broker, making me part of your dynamic team will ensure a greater outcome on your investment.
Red Caliber Realtors, LLC~ 860-608-3885~ [email protected]