Thinking of flipping a house?
It's not as easy as it looks but it can be very profitable! Are you really prepared to get in the Real Estate Game?
Understand the risks and gain your rewards!
All profits from flipping a house take place when you buy the home, not when you sell it. Be sure the purchase price of your project makes sense and your estimates are accurate.
With all the hard work and risk in flipping a house, breaking even is not an option.
Call a FindMyAppraiser.com real estate appraiser to review your numbers to maximize your profit margin.
Appraisers see the big picture
Real estate purchases fall into two categories…investment and speculation.
When you buy an investment property you can make money in two ways. Hopefully, property values will increase over time and you will be able to gain additional equity. The property also brings in rental income which creates a cash flow. Having two income opportunities makes owning a piece of investment property less risky.
When purchasing a speculative piece of real estate you only make money one way. You have to “ring the register” and sell it. This is what property flipping is all about. When buying speculative real estate you must make sure you are paying the right price to generate an acceptable profit.
Your profit in a flip is determined by how much you initially pay for a property. If you are overpaying or over improving during renovation your profit margin will be significantly reduced when it is time to sell.
Do you really want to work hundreds of hours and risk a lot of money only to make a small $3000.00 profit?
These types of financial decisions require detailed research and comprehensive local market knowledge. This is where a real estate appraiser can help.
Real estate appraisers are third party and unbiased professionals. They can help you understand the value of a house before and after renovations and give you a detailed picture of your profit margins.
Appraisers take the “emotion and excitement” out of the transaction which is critical to making a smart property flipping decision.
Connect with a FindMyAppraiser.com appraiser today!