Flipping a house or real estate is the attempt to make short-term profits based on capital gains of the underlying. In short, you are hoping to buy a property and sell it quickly for a profit. You, my friend, are a speculator.
"Speculator you say? No, I am a real estate investor because I plan to do this for a while, even full time if possible."
If it makes you feel better at parties you can call yourself a real estate investor, but each property is a speculative investment. There is nothing wrong with speculative investing, but the hairs standing on the back of your neck when you hear the word speculator are justified. This is a risky business. You are not betting small change. Because of leverage from banks loans, you are wagering upwards of $50,000 or more. In fact, you are probably using your house as collateral. Egad...You are betting the house.
Dont panic. As in any investment, speculative or otherwise, you can reduce our chance of losing money if you understand the underlying and the risks involved. The underlying in this case is real estate. Information provided on this site should give you a good understanding of the basic risks. No one can ever guarantee that you will make money, but we can give you some basic theory and tools to help guide you.
Many folks starting out look for the best real estate investing program. They want to know "How do I start to invest my money?" Some fall prey to a late night renegade. Real estate riches await if you follow the secret program - available at a discount for a limited time, of course. Perhaps we should have called this guide House flipping for millions. Just note we never said a million of what.
The truth is that markets are constantly changing. Your strategies need to adjust likewise. Any set strategy or program is vulnerable to changing markets. What do you do to protect yourself from these fluctuations? It is hard to say since nobody can predict the future. However, what you can do is learn fundamental skills that will help you to evolve your strategies to adjust to whatever the market throws at you.
Welcome to our dojo grasshopper. Here we will show you the basics and fundamentals for real estate speculating - flipping in this case. With this information, you should be able to develop your own style and strategies based on your personal risk tolerance. As the markets evolve and fluctuate, you will have the ability to adapt and evolve. With experience and continual study, your kung-fu could reign supreme.
The following guide is in a specific order based on how you should approach your project. You begin by feeling out how much money you have to play with, and what type of financing is generally available. Next, you look at your investment goals for the project and develop an idea of what you should be looking for. Think of it as a filter that will help focus your time on projects with the highest profit potential not the laggards. Then, you will go property hunting; perform due diligence, and seal the deal. Now, you need to get rid of this place to make a profit. Time is money because the mortgage payments and expenses pile up with each passing month. The final parts of the fundamentals will cover how you should oversight the project, and the different types of risks you face.
You can do this lets get started.