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The Basics Of Purchasing A Property To 'Flip' It

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By : Alvin Smith    99 or more times read
What is house flipping? It is the act of buying a house at a decreased price possibly because the house has some issues and then sell again for a profit. These can be cosmetic issues or some pretty serious problems.

To get a house to flip is not really a very complicated task. Most likely that is why many people do this for a good sum of profit. All one need is real estate listings, keen eye and a home inspector. When looking at newspaper ads for properties, look at keywords in ads such as handyman special, as is, fixer-upper, or diamond in the rough. Rising neighborhoods are also great places to look at – especially those that has a low crime rate. Avoid upper- class areas since flipping is more difficult. You can also narrow down your search by knowing where you want to be. This way, you can search for houses with vicinity of your choice.

Walk target neighborhoods to look homes that look vacant and in great disrepair. Poor and non-existent landscaping, broken fences, peeling paint, old fixtures and out-dated home appliances and even an ugly front door are some of the things you want to look for in a house. A house you can flip is one that has cosmetic problems, but not structural, plumbing or even electrical issues. It is important to look very carefully for hidden gems, so to speak. Good wood under carpets should not be missed during inspection. Even a gorgeous stone exterior that has been under grime and soot can call attention to any buyer.

A lot of property owners are desperate to sell for less than market value. Looking for them will not be difficult. Almost all of them usually tell friends and family about them
Be certain to tag along an inspector who can unravel any hidden “bombs” with the house such as termites, underground oil tank leaks, molds, asbestos and other problems such as heating, and infrastructure flaws.

After all these had been done, then the real work can start. When acquiring on a property to flip is to make sure that your finances are ready. You need you pre-approval letter before you give your offer. Pre-approval is very different from pre-qualified. If you have cash, you need to have access to it within 30 days. It is simpler to purchase the property if you money that readily available.

This can be a great money-making opportunity. In spite of this, a person who wants to engage in this kind of business should be aware and cautious at the beginning of the process. The method can be very quick or can be long depending on what needs to be done to the house. Having basic landscaping to a property can increase profits by 100% to 150%. To avoid problems related to the prepping of the house is to get involved with the contractor. That will save you money and time in the future. Make them your associates in the work to be done.

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