Buying, remodeling, and then selling real estate investment property is the practice known as \”flipping.\” This term refers to the quick turn-around time from the beginning of the process to the end. In the late 1990s and early 2000s, many investors saw flipping as a quick and foolproof way of making money in real estate. In many markets this was the case, but for others their dream of making a quick buck soon turned into a nightmare of lost expenses. In certain metropolitan areas, the real estate boom came to an abrupt end. In the late 2000’s, within mere months some homes lost 30-50% of their initial value. Many investors were caught in the painful position of owning newly rehabbed property that no one wanted to purchase.

Certainly the damage was lessened for investors who had purchased these properties with cash. They are able to rent the properties or to hold them until the market recovers enough to sell them for a profit. Other investors had borrowed against a personal line of credit and then were unable to sell their property. This put many of them in a difficult financial situation.

If you are considering flipping as a career or part-time job, you will need to consider your willingness to accept financial risk, and you should also consider the worst-case scenarios. Are you in a position to make payments on a loan if the property does not sell right away? Flipping is exciting, can be action-packed and filled with urgent construction timelines. But if you are risk-averse or you’re not good at dealing with stressful situations, it may not be the right choice.

Once you decide that flipping is for you, the fun begins. Local real estate agents often have the best idea about underpriced properties. Perhaps it\’s the ugly duckling on an otherwise nice street of homes. If a seller is motivated – especially if it\’s a bank-owned property – the purchase process can go quickly. Sometimes the home can be purchased within days or weeks and the work can begin.

Depending on the real estate market in a particular area, some homes can be simply cleaned, painted and sold again. Many new buyers are willing to do other cosmetic work over time, but would not be willing to purchase a home that looks unattractive right off the bat. Other homes may require more extensive work. For example, flooring may be damaged or out of date, cabinets may need to be replaced, and countertops updated to something more modern. Also, any damaged bathroom fixtures will need to be replaced, and be aware that local codes may require wiring and plumbing changes (those codes are generally available online through the city planning office in most areas).

Nicer neighborhoods will generally require that the home being flipped is clean, attractive and mostly up-to-date. In a more modest or first-time homebuyer area, the work can generally be more cosmetic.

Flipping is not for everyone, but investors who have an eye for color and design, a willingness to work hard in a short amount of time, and a positive attitude about the local real estate market can make a career of bringing homes back to life.

Visit free-rental-property-investing-info.com for free landlord forms, tools, and no-hype educational info focusing solely on investing in rental properties. Browse topics like how to negotiate awesome deals, how to remove PMI, and more!

Visit http://www.free-rental-property-investing-info.com for free landlord forms, tools, and no-hype educational info focusing solely on investing in rental properties.

Author Bio: Visit free-rental-property-investing-info.com for free landlord forms, tools, and no-hype educational info focusing solely on investing in rental properties. Browse topics like how to negotiate awesome deals, how to remove PMI, and more!

Category: Real Estate
Keywords: real estate, flipping