Flipping real estate is simple to those who know the main rule. Real estate comps always tell the story. You make your profit when you buy. So buy low, sell high. Flipping says you are buying with the sole intent of turning a profit at the highest rate possible, as quickly as possible. Flipping property is not about the long-term investment, short term is the goal.
Just as with any business, real estate investing can have ups and downs. The market over the past few years can attest to that. Let’s look at some tips, that I thought were worth sharing to keep your business in the black:
1. Know the importance of having capital that you can liquidate and access if necessary. You need to be able to take care of yourself and your family, no matter what the housing market does. That said, knowing what it takes to run your household and keeping a reserve is wise.
2. Work until you are certain you have funds to support your family long term. Remember that a steady, regular job helps to provide the stability that will keep one from over stepping their financial boundaries. Keep your head, keep your job, keep your family protected.
Next time, let’s discuss my last two tips to help you keep your hard earned cash in your pocket. We will talk more about the importance of having someone walk the unit prior to purchase, whether that someone is you or an inspector, as well as staying within your budget when investing.