Investing in real estate can be a good way for some to make a little profit next to your main income, others will do it as a full time job.
One way or the other, if you want to invest in real estate, you will need to know how to find the right foreclosed house that you can flip for a nice profit.
So, let’s start with the three basic rules that you need to know to become successful in real estate.
1. The first thing you do, before anything else, is studying your market. This is a talent for which a certain amount of experience is needed, but it can be learned.
Concentrate on the house prices in the area you’re targeting. Look at which house features will loose money and which will increase the price.
Check at the areas: which area or location is hot and which is not. And most of all, find out what buyers want when they are looking for a house.
2. After you studied your market, you will need to learn to recognize an opportunity when you find one. If you choose to buy a foreclosed house to flip, you will need to be able to recognize if the house can be turned in a gold mine without to many costs.
Don’t look at the property as it is now, but look at it with the end idea in mind. Look at what it can be, sometimes just minor chances like interior and exterior painting and cleaning up the yard can make a lot of difference.
And that’s why it is very important to have knowledge of the market. If you know what buyers want, if you know what raises the price, you know what you need to invest and how much you can profit out of the deal.
3. And the most important rule: know when to let go of an investment. Don’t throw your money through the drain.
You need to be able to judge the extent of repair/fixing a house requires from a cursory glance. Don’t get yourself involved with houses that need a lot of plumbing, electrical and/or plastering work. These jobs are really expensive, unpredictable and may not get you the outcome you were hoping for.
When you go by the above three rules you will find a suitable foreclosed house to flip for a nice profit. But remember, it takes time to find the good, as much as it takes to recognize the bad ones.
Some people will have a talent for it, but there are a lot of examples of people who had to wait years before they could get the profit they were hoping for.
After a while you will develop a sixth sense which will help you decide which is a good house to flip and which is not. Let’s put it this way: anything that doesn’t give you at least $30,000 in profit isn’t worth the trouble.
While these tips may help you get started with investing in foreclosed houses, if you’re serious about making profit flipping houses, you’re going to need a solid plan.
In my experience I have found “Unlock the Hidden Wealth in Pre-Foreclosures Home Study Program” to be the most informative course.