Real estate investing sounds like a glamorous business to many people, and it might be a great solution to increase your income and improve your quality of life. Instead of working a corporate 9-5 job, there can be some real benefits to focusing your efforts on buying and flipping homes.
Here are a few things that you need to know before putting your hard-earned money into an investment property.
Talk to the Professionals
Before you jump into the real estate investing area, make sure that you understand enough about buying and flipping so that you can maximize your investment. An experienced real estate agent can be a great way to help you understand the market so that you can choose properties that will turn a profit.
Another great option is to talk to someone else who is profitable with this type of investment. You can take classes about real estate investing, but you need to be careful about the source to ensure they aren’t trying to scam you for money. The best solution is to get a recommendation from friends or family so that you can talk to a contact who understands real estate investing.
Know Your Market
Be clear about the prices for the homes in the area where you are planning to buy and sell. If you are selective about the home that you purchase, you will be more likely to maximize your profit. For example, if you buy a property in a cheaper neighborhood and add luxury finishes inside, you might not be able to sell the house for as much as you could had you added the upgrades to the same type of house in a nicer neighborhood.
Before you make a purchase, you need to understand comparable properties in the same area. Your real estate agent can look at homes that have recently sold, helping you to choose a fixer-upper with the highest potential of a successful return on your investment of time and money.
Choose Proven Contractors and Suppliers
If you are planning to flip homes on a regular basis, you should try to negotiate deals with good contractors. When a contractor know that you will be sending them consistent work, they are often willing to offer a discount to their prices on materials and supplies. The best way to connect with contractors that you can trust is by asking for a referral from your real estate agent. Another option is to talk to someone else in the home flipping business to find out about their preferred vendors.
With a little bit of work and an investment in the right property, you will see that you can turn a profit by buying and selling homes. Contact us at DUFFY Realty, and we will gladly help you find properties that meet your specifications: (678) 318-1700