“FLIPPING” REAL ESTATE
Flipping real estate refers to buying a property at a low price – and selling it at a profit. Many people have made a fortune doing this but it is also possible to lose money. The properties’ market value, location, cost of repairs, length of time to repair and update and marketability all must be considered. Flipping is also done sometimes without improvements, although condition of the property may or may not be the reason it can be bought under market. It is advisable to have a licensed contractor inspect the property prior to purchasing.
If all these items are considered, “flipping” can be a lucrative venture. The danger in flipping is underestimating repairs or paying too much for the property.
Sometimes properties are bought by investors and then resold “as is” to another investor at a small profit. This is not as profitable as buying the property at a bargain price and fixing it up – but it is a quicker return.
When repairing and fixing up, it is good to discuss with a knowledgeable real estate agent which items are required to be repaired for the property to be eligible for conventional, FHA, VA and other types of financing. The professionals at Choice Jacksonville Realty are available to help with your investment needs.
