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Beginners Real Estate Investing Guide
Real Estate Investing - Ask
Questions Before Making an Investment
First Time Real Estate
Investor
Real Estate Investing - Planning
Your Investment Strategy
How to Find Real Estate
Investment Properties
Getting a Professional Home
Inspection
Large Profits From Inexpensive
Real Estate Repairs
Real Estate Investing - Costs
and Fees
Real Estate Insurance
and Risk Management
Real Estate Investment Risk
Part 1
Real Estate Investment Risk
Part 2
Getting The Best Return For
Your Investment
Creative Financing
For Real Estate Investors
Real Estate Investment Tax
Considerations
Real Estate Rental Properties
- Great Investment or Nightmare
Real Estate Foreclosures - Great
Deal or Headache
Flipping Real Estate for Profits
Slow Return On Real Estate
Investments
Negotiating for the Best Possible Real Estate
Deals
Real Estate - A Time to Buy and a Time
to Sell
Creating Your Real Estate
Investment Strategy
Investing and Growing
Your Real Estate Portfolio
Commercial Real Estate
Investing
Real Estate Marketing
Understanding Real Estate Law
Do You Need An Real Estate Agent?
What The Real Estate Mortgage
Lender Sees
Do You Have A Career In Real
Estate?
Rural or Urban Real Estate
Investments?
Real Estate Investing on the
Internet
Real Estate Investing
- Property or Paper? |
Real Estate Investing - Introduction
Real Estate Investing - Flipping Real Estate for Profit
You've probably heard a lot about flipping houses, with the latest onslaught
of reality television shows, but in the world of real estate investment,
Flipping has been going on for years. When a property is flipped, it is bought,
improved, and then quickly resold for a nice profit. Often, when a home is
flipped, the flipper trys to get the improvements made and get the house
sold before they have to make any mortgage payments.
Some people think that flipping a house is illegal, and this is absolutely
not true. However, inflating the market value of a property, using fake documents
or making false statements concerning a property, with the intention of
defrauding, is illegal. This, however, is not what flipping is. Again, when
a property is flipped, the property is purchased, improved, and then sold
at it's new value. The improvements raise the value of the property -
significantly in most cases.
To get involved with flipping, you must first find a property that has a
lower value - and purchase price - because the property is in disrepair,
or needs improvements. You have to determine - before purchasing the property
- that the improvements or repairs that you make will give you a profit,
after you deduct your original purchase price and the costs of repairs or
renovations.
Sometimes, nothing has to be changed if you can find an eager seller. For
instance, when people get divorced, property may be sold quickly, but below
market value. You could purchase property through tax-lein auctions and acquire
it well below market value. If a home is being sold by the owner, it may
be priced well below market value as well. You can also locate people who
are having trouble paying their mortgage, and simply want to get out from
under the debt, without ruining their credit in the process. In this case,
you simply assume the loan, without having to pay the full value of the
property.
Before you start looking into property to flip, have your financing ready
to go. This may be traditional mortgage financing, retirement savings, or
other savings that you can use to make the purchase. Another alternative
is to enter into a contract to purchase a property, and then sell the contract
to another interested buyer before the closing on the property. You can easily
net up to $5000 in this way, and no financing is required.
Flipping a property isn't always easy. You either need to know how to do
the work to the property yourself, or you need to know - in advance - what
you can expect to pay for contractors and materials. You also need to know
that the changes you make (if changes are needed) will indeed raise the value
of the property. The more you can do yourself, the more money you will make.
Aside from locating flippable property, evaluating the profitability of it,
and making the necessary changes, you also need to know how to sell the property.
You may need to know a great deal about real estate law and contract law,
and help your potential buyers through the process, just as a licensed real
estate agent would. You will need negotiation skills, and you will want to
develop good relationships with mortgage lenders, title companies, and
contractors.
You also need to school yourself on the tax laws that relate to buying and
selling property quickly. Some people get into flipping, without thinking
about the tax consequences, only to find that they don't actually make any
profit at all!
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Beginners Real Estate Investing Articles
How to Advertise a Rental
Property
How to Build Equity
in any Real Estate Market
How to Find Motivated
Sellers
Developing a Profitable Real
Estate Investing Strategy
Bird Dogging: Getting Started in
Real Estate Investing
Buying Your First Home
Using Lease Options to Purchase Real
Estate
Real Estate Foreclosures
Increase Your Net Worth Through
Real Estate Investing
Interest Only Mortgages
Real Estate Investing
No Money Down Real Estate
Investing
The Power of the Lease Option
Real Estate Investing Tips
Real Estate Investments
Refinancing Your Mortgage
Loan
Paying Your Mortgage
Selling Your House without a
Realtor
"Subject To" Real Estate
Financing
Using Trusts as a Real Estate
Alternative
Search for Beginners Real Estate Investing Information
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