Tips For Beginning Real Estate Investors: Fixing And Flipping

Tips For Beginning Real Estate Investors: Fixing And Flipping
Houses
By Jeanette Joy Fisher

Many real estate investors make millions turning ugly houses
into dollhouses. On the other hand, some inexperienced
investors lose money buying houses that just don't turn a
profit. If you want to get started investing in real estate by
fixing and flipping houses, you'll want to know what to type of
property to buy.

Three Tips to Help You Find the Ideal Fixer

1. Learn Your Market

Your first task, exploring your market, helps you know a
bargain house when you see one. Look at houses for sale in your
area. Keep track of sales and how long the houses take to sell.
Ask about the terms of these sales because this helps you
understand how sellers market their property. For instance, if
a seller paid closing costs for the buyer, did the price rise
from the listed price accordingly? Or, did the seller come down
on the price and pay the buyer's costs, too. Examine the sales
that sell quickly. What home features and financing options
prompted the fast sale?

Also, look at model homes. Buyer often chose resale homes
because they can't wait for a new home to be finished. But,
these buyers like the amenities found in newer homes. When you
transform your fixer, you'll know what buyers desire and you'll
make informed makeover choices.

2. Know When "Bad" Can Be Good

When you first start out in your real estate "fixer"
enterprise, you'll want to look for houses needing only
cosmetic work. Look for houses that just need cleaning up,
painting, and new flooring. Don't be afraid of stinky houses
that show horribly; look for fixers with peeling paint, holes
in the wall, stained carpeting, and trash in the yard.
Remember, these houses won't look good to most buyers, but that
other investors see them as gold mines. You need to use your
imagination when viewing theses homes. Try to visualize the
finished product.

3. Know When "Ugly" Means "Pass"

If the house has cat urine staining the carpet, the
sub-flooring or concrete foundation may need replacing. Dog
urine cleans up easier. If the walls have too many cracks and
bumps, you may need to hang new sheet rock or hire a
professional plaster refinisher. Look for signs of plumbing
problems such as water stains under sinks and loose flooring.

When you're new to real estate investing, always remember your
limitations. Use caution when considering houses needing
structural repairs. Some rehabbers replace walls, plumbing,
structural beams, sub-flooring, and electrical systems, but
they acquired those skills after years of experience or pay a
professional.

If you find a house with structural problems, get estimates
from reliable contractors to do the work. Experience teaches
you how to do more over time. Until then, rely on experienced
contractors to do the repairs. Take professional estimates into
account before deciding whether or not to purchase an investment
property.

Why would anyone want to do this?

How much does the average investor make? In Philadelphia, real
estate investors only make offers on houses they expect to make
$30,000 on. In Southern California, many investors make $50,000
to $100,000 on each house.

You can make a fortune fixing and flipping ugly houses. Learn
your market. Know when "ugly" means bad that can be good, and
when stinky means keep looking.

Copyright (c) 2005 Jeanette J. Fisher. All rights reserved.

About the Author: For more information about finding,
financing, fixing and flipping houses, visit Jeanette Fisher’s
Doghouse to Dollhouse for Dollars. Learn about decorating to
attract buyers. Jeanette teaches Design Psychology college
courses and professional real estate seminars. She is the
author of books about home staging, credit, and real estate.
http://www.doghousetodollhousefordollars.com/

Source: http://www.isnare.com