Want to Flip Homes? Know What Makes a Good Real Estate Investment! By Chris Chico At Isnare.com Ezine Articles

If you’re interested in learning how to flip homes the question “what makes a good real estate investment?” is a common question, but it does not have a common answer. The secret to real estate investing – or any investing for that matter – is to buy low and sell high. If you can do that, you’re an investor. If you can do that consistently, you’re a professional investor. That’s the simplest explanation.

So, to determine what makes a good real estate investment is really a matter of determining what factors will allow you to buy a home at a lower price and then sell it at a higher price. And that’s what this article is about.

FACTORS THAT ALLOW YOU TO BUY A HOME AT A LOW PRICE

Buying a home at a lower price is actually easy in a bad economy and these days finding that kind of investment is easy. That’s because many people are facing the threat of foreclosure and don’t want that negative impact on their credit ratings. They’d rather sell their house privately – to a real estate investor, at a discount – than have the bank come in and kick them out. This isn’t about profiting from someone else’s misfortune. On the contrary, real estate investors are helping homeowners get out of the mortgage commitments they cannot keep.

Other factors that influence the price of a home might be its condition. When the roof was last replaced? Does the home have central air and heat? Are there tenants? What’s the general condition of the plumbing and electrical systems? Each of these items can drive down the price of the home to make it a discounted price, and thus, an ideal purchase for an investor.

But then you have to sell it to realize a profit…

FACTORS THAT ALLOW YOU TO SELL A HOME AT A HIGHER PRICE

Selling a home takes a whole different set of skills. You may want to simply flip the home quickly to a buyer. If you buy the house at a substantial discount and then sell it at a good discount, you’ll still make money and sell the home quickly because of its lower-than-market price.

But many real estate investors also choose to rehab a home by putting money into the home through new paint, carpet, and landscaping. Each of these decisions can help to increase the value of a home and many minor repairs – such as the three just mentioned – can help to increase the value of a home many times over the cost of painting, carpeting, or landscaping. And, if a home is rehabbed, staging the home might be another option to help make the home even more attractive to buyers.

In up markets or down, real estate investing is an exciting and profitable venture if done correctly. There is more than just the urge to want to flip homes, you have to understand the whole process. Buying low and selling high is the secret… maybe you want to try it!

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