How can you better guarantee profits and profit margins when flipping houses today?
According to a recent media article, some real estate investors in areas of the country are finding it increasingly difficult to produce anticipated profits after flipping houses. How can you prevent this from happening to you?
Similar situations may not be uncommon today, but that does not indicate a major change in the velocity of the new housing boom or that it’s too late to get into flipping houses.
So how can you avoid falling into that boat, lower risk and enjoy better profit margins when flipping houses in today’s market?
1. Real Estate Education
Investing in your real estate education will have the biggest returns of anything you do and will keep on paying you back into eternity.
2. Lock in Your Profit When You Buy
Don’t speculate. Always buy low and lock in profit upfront. If possible, have it sold already so that you are guaranteed profits before you even write the contract.
3. Be Careful What You Put in
One of the biggest traps in flipping houses today is over improving, under improving or simply investing in the wrong improvements. Know your stuff and what the real returns on them will be.
4. Do Your Due Diligence
Don’t invest without thorough due diligence. Know your values front and back end and recognize you need more tools than just Zillow to accurately assess them.
5. Don’t Allow Appraisal Contingencies
You might want to include them when making offers to buy homes, but don’t allow them when you sell – that’s so 2001.