A How To Guide For Beginners To Flip Houses
Flipping houses is one of the best ways to make huge money in shorter period of time. Yes, similar to any kind of investment, flipping houses for profit need proper training and experience. There are several shows online that shows people buying houses that are in distress, fixing them and selling it for huge profits. These shows does not tell you the most important things like how to find a distress house, how to negotiate on the price and deciding on what’s the best price to buy. These are most important factors one should know when they plan to flip houses for profit. Here is a simple guide on how to flip houses for beginners.
Best Ways To Find Houses That Can Fetch You Handsome Profit
There are lot of methods to find a house that can bring you huge profit. The basic rule while flipping houses is, when you buy a house at a deep discount, it will tend to bring you huge profit. Your goal is to find people who have a need to sell their house. For example, a person who is facing foreclosure or moving to a different city, who cannot afford the property tax, going through a divorce or a person who could not afford to repair the house are the ones who will be looking to sell their house fast. So, the first goal is to find people who are in need to sell their house.
The best way is to look for vacant houses in the neighbourhood. You can drive through the neighbourhood looking for vacant houses. You can know if a house is vacant when the house has a broken window or the lawn is overgrown, the mails are not collected and there are lots trash and dusts at the entrance of the house. When you see such houses, you can write down the address of these houses and then get online to see where the tax bill is being sent and then you can send them a letter expressing your willingness to buy their house.
How To Determine The Buying Price Of A House
Once you find a seller who is in need to sell his house, you need to make sure that you are getting a good deal. Getting in touch with a real estate agent in your neighbourhood will be helpful. When you build a strong relationship with local real estate agents, they will be able to provide you information on the current market price and the best price to purchase the house.
The rule of thumb, when it comes to real estate investment is to buy houses at around 70% of the resale value. This is after deducting the repair costs. For example if the resale value of the house is $100000, you should take 70% of the resale value and then deduct the cost it will take to repair the house and this should be your offer price to buy the house.
These are the simple guidelines one can follow to make profit by flipping houses. However, these are only basic guidelines. In order to get more insights, the beginners who are a looking to flip houses for profit can choose an online training program that has mentors to guide you through the whole process