From Buyincomeproperties.com

Flipping
Building Your Investment Capital by Flipping Real Estate
By BuyIncomeProperties.com
Jun 1, 2006, 15:26


There are many ways in which you can make money by investing in real estate. If you are looking for a long term investment, this will usually require capital in order to buy you investment property or at least to put down a deposit. However, there are strategies that you can use to get into the real estate market without the need to outlay large amounts of cash up front. 

Many real estate investment strategies require relatively large amounts of capital to get up and running. But for many people wanting to profit from investment in real estate, they do not have that level of capital to invest. But by using high volume, profitable real estate strategies that do not require large amounts of capital up front, such as flipping real estate, investors can build the required working capital that they can then use for other forms of real estate investment. 

So, what is flipping real estate and how can it help to build capital quickly? Flipping real estate is basically where you buy a property with the aim of selling it again virtually straight away to another investor, for a profit. The secret behind flipping real estate is not trying to make the most of any profit from selling a single property to another investor or owner-occupant, but selling the property quickly and then moving on to your next deal. And with properties being bought and sold in high volumes every day, this is where you make your real money. By selling for a profit that also allows other investors to also make a profit on the property, you will make your profits quickly and you will soon find your investments really paying off. 

Finding a suitable property to flip
An important factor in being able to make a profit through flipping real estate is being able to find the right kind of property to invest in. Any property you buy for the purpose of flipping it should be able to be bought at a discount to the market rate and it should also have the potential to be easily, and quickly, sold. You do not need to make a huge profit on the property; you just need to make a profit. 

The ideal property will have a motivated seller. That is, an owner who, for one reason or another, needs to sell the property quickly. This may be due to that fact that they are in financial difficulty and are having trouble making repayments. It may be because the owners are going through a divorce and need to sell the property quickly. It may be that the property is vacant and the owner wants to get rid of it because it is a liability. It may be run down and in need of repairs that the owner cannot afford to make. 

There are many tell tale sign of such properties. Look for properties that appear untidy and in need of a clean up, are boarded up, have overgrown lawns and gardens or appear to be vacant. 

When you find such a property to invest in, decide whether you are going to offload the property straight away to another investor or do a clean up and make repairs before selling it. Whatever you decide, the aim is to sell it again as soon as possible. 

As mentioned, don’t try to make as much profit as possible on the property. Sell it for a modest profit, so that it becomes more enticing to another investor. Remember, the secret to flipping real estate is the number of deals you can make rather than the profit margin of each deal. Sometimes, you will obtain a property at a bargain basement price and this will provide you with a great opportunity to make a good profit. These deals however, will not come along every day. But that does not matter!

Flipping real estate provides you with the opportunity to quickly build your working capital so that you can then begin making other, longer term real estate investments. With flipping real estate, your overheads are low in relation to other forms of real estate investing and this means it is a great way to begin your profitable career in real estate.



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