While serious money could be made flipping houses in the early 2000's, the days of finding steals are long gone. Our economy is strong and foreclosures are the lowest they have been in years. That is actually great news for the country but makes turning a profit on a flip a little more challenging.
TV shows have made the flipping process seem easy. Find a cheap property, put some money and sweat equity into fixing it up and then resell it for a huge profit. Looks good on paper, right? And, for the most part, a lot of money can be made flipping homes. The only real disadvantage is the risk of losing money. Although there are always risks involved in anything we invest in, the benefits of flipping usually far outweigh the disadvantages. If you decide to flip rather than hold (holding definitely has less risk), the following is a simple outline of the process of flipping.
- Find a property with investment potential.
- Analyze the property. If it is a single family home, comparables are the best indicator of the property's value in the current market. If it's a multi-unity, more information is needed to run the numbers. Give us a call and we can walk you through the process. If it runs well, it's time to write an offer.
- Buy the property at the right price.
- Fix the property within the schedule you have outlined and adhering to your pre-determined budget.
- Sell/Flip the property quickly.
Tune in next month for a more detailed description of how to complete the above items and discover the best way to find deals on properties for sale in Omaha.