What is Fix and Flip Real Estate?
Fix and Flip refers to “buying low” and “selling high”. This involves the process of buying a low-cost property, repairing and fixing it and then selling it at a higher price for a profit. This is best done in a rapidly increasing real estate market.
Fixing and Flipping properties can be a highly lucrative strategy to earn a huge amount of profit especially if the housing market is at its peak. Old homes, distressed properties, and foreclosed houses are popular options used in house flipping because you can acquire these properties at a reasonably low price thus increasing your potential to gain huge profit.
How to become successful in Fix and Flip real estate business?
One factor that can spell your success in a fix and flip real estate is your database of resources and contacts. Also, it takes a reasonable amount of time and effort to find the right deal, suitable financing, affordable contractor and property maintenance to jumpstart the process.
It is not something that you can work with for just a few hours a week and be profitable. You would need to devote your time, energy, guts and effort into it and be hands-on as much as you can. If you are unable to manage it well, you can end up landing on a big loss.
Advantages of Fixing and Flipping properties
You can make a quick and good profit
One of the main reasons why people get into real estate fix and flip business is the good amount of income one can gain from it. If done properly and strategically, a single deal can provide a very large amount of profit and this can be achieved within a short period of time.
Most people who are in this venture manage to earn and get back their investment in only a few months.
Acquire good experience in the field of real estate
Fixing and flipping properties offers a great way to learn as much as you can in the real estate business. It can likewise enhance your knowledge and expose you to various relevant areas such as construction, house restoration, plumbing and interior design.
Moreover, the entire process will enable you to widen your network and establish a good database for future use and references.
Gain Buyer Insights
Once you’ve managed to put your first flipped property in the market, you will start to gain greater insights with what investors and potential buyers within the area are particularly looking for.
Take advantage of this opportunity and write down notes on their preferences and the factors that hold them back from purchasing a property within an area. You can make use of this information to create further adjustments in your succeeding flips.