GMAC Real Estate – Real Estate Flipping Guide: How Do I Find Real Estate to Flip?
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How Do I Find Real Estate to Flip?

Takeaways

  • Rule one when flipping is don't get greedy.
  • Keep your costs down and offer the property at a discount to make selling easier.
  • Use proceeds from one sale to fund the next investment.
  • Not everyone is suited for real estate flipping.

Did you know?

  • It's a good idea to find a home with rental value in case it doesn’t sell quickly.
Don’t get greedy flipping houses. As you begin your career in real estate flipping, the first rule is, don’t get greedy. If repair costs are kept to a minimum and buy/sale real estate transaction costs are reasonable, you should be able to also offer a buyer prospect a discount of 5 to 10 percent and still turn a tidy profit.

Here are a few more useful tips for the new real estate flipper:

  • When searching for real estate to flip, think location. Look where housing demands are high and houses do not stay on the market long.
  • Look for property that requires minimal expense to ready it for resale and use a home inspector to avoid expensive surprises. A home inspector’s report can also be useful as you negotiate the purchase price.
  • Don't over-repair or over-fix up. The less money you spend readying the property for sale, the higher your profit on resale.
  • It is also helpful to look for property that has rental potential in the event a resale takes more time than planned.
  • Look for a motivated seller who is willing to take 15 to 20 percent less than the current market.

After your first successful venture, you can use the return from that resale for the next investment. If you find that your flip didn’t provide adequate return, you should seriously think about how dedicated you are to this particular investment strategy – not everyone has the time or expertise to make it successful.

Learn More About Real Estate Flipping

To learn more, explore the advice on Real Estate Flipping in this section of our site. Before you engage in this aspect of the Real Estate business, you need to be fully informed. We recommend you talk with a GMAC Real Estate Agent, to get professional and experienced real estate advice.