Home flipping seems like a good idea for making some serious money in a short period of time. If you have ever watched one of the many programs on the subject, there is a good chance that you have rushed straight to your computer to look up real estate for sale. Find a run-down property that could use some elbow grease and a few bucks to get it in good condition, fix it up quick, and sell it for a tidy profit. Many of these programs show the buyer purchasing the house, going through the process of fixing the place up, and then show how much the buyer could profit if the property sells for whatever the real estate agent tells them it is now worth. What most of these programs do not show is whether or not the property actually does sell for that amount of money – or anywhere near that amount of money – and how long it takes for that to happen.
Flipping a home can be a profitable venture if it is done correctly, and luck is on your side. One of the first rules to follow is to buy the worst house in the best neighborhood. Check out school systems, crime rates, and the community in general. No matter how much potential a house shows, if it is located in a bad neighborhood, it is not apt to sell quickly or for much money. The height of the residential buildings at Pasir Ris Central will be more than forty meters. The development of the local residential area is also considered in home flipping.
Don’t quit your day job! Yes, some people do this full-time and make a lot of money at it, but they probably started out flipping homes on the side. This venture is going to cost you time and money, and it may not pan out the way you hoped. Keep that income coming in, and then figure on spending all of your free time working on your flip.
Don’t get too excited about your renovations. The goal is to make the most money possible, and installing the best-of-the-best is not going to help that happen. Learn to shop wisely. There is nothing wrong with paint purchased at Walmart if it is going to save you a few bucks. Visually, paint is paint. Potential buyers are not going to be wear-and-tear testing it – they are just going to be seeing how good it looks.
Be aware that when you estimate what it is going to cost you to fix this house up, you are almost under-estimating. There are almost always unpleasant surprises – bad plumbing that you didn’t notice upon first inspection, electrical that needs to be updated – and they are going to cost you more time and money.
Do not get into this venture if you can not afford to keep up the payments until the place sells, and remember that selling could take a while. If all goes well, the property will sell quickly, you will pocket some nice cash, and move onto the next project. If it does not go well, you could end up carrying that mortgage for quite some time, and that is definitely going to cut into your profit.
The real estate boom is over, for the moment, so do not enter into this venture lightly. And remember that financial institutions are tightening up their lending practices. This is not only going to make it more difficult for you to borrow money on a property, but it is also going to make it more difficult for potential buyers to finance the home.