As you begin real estate flipping, the first rule is, don’t get greedy.  If repair costs are kept to a minimum and buy/sale transaction costs are reasonable, you should be able to also offer a potential buyer a discount of 5 to 10 percent and still turn a tidy profit.

Here are a few more useful tips for the new real estate flipper:

  • When searching for properties to flip, think location.  Look where housing demands are high and houses do not stay on the market long.
  • Look for property that requires minimal expense to fix for resale and use a home inspector to avoid expensive surprises.  A home inspector’s report can also be useful as you negotiate the purchase price.
  • Don’t over-repair or over-fix up.  The less money you spend fixing the property, the higher your profits are on resale.
  • It is also helpful to look for properties that have rental potential in the event a resale takes more time than planned.
  • Look for a motivated seller who is willing to take 15 to 20 percent less than the current market.

After your first successful deal, you can use the return from that resale for the next investment.  If you find that your flip didn’t provide adequate return, you should seriously think about how dedicated you are to this particular investment strategy – not everyone has the time or expertise to make it successful.

 

Contact Infinity Realty Guam today for the real estate company that will provide quality service you deserve.  (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.