Gain Profit from Flipping House

Flipping a house is profitable and tricky at the same time; it takes guts and a level head. While it may not seem to be a good idea to invest in real estate when the market is low but if you want to flip a house, it is the best time to do so.

Step 1: It is all about the research
Fort Myers Property Management says that to be successful, you must first do your research. It is important to understand the area you purchasing from, the market and the home prices of the neighborhood.

Step 2: Budget
The next thing to do is to calculate how much money you need to purchase, flip and sell the house. A common mistake investors make is miscalculating how much money is needed to renovate a house. You will encounter hidden renovation costs along the way.

Step3: Financing the flip
The best way is to have money on hand and have a bank loan. Nicole Sassaman, a veteran Southern California flipper and interior designer advises flippers to have 25% down and 18 months of reserves in the bank. Cut costs by being creative. Some flippers apply the low ball offer technique while others cut costs by getting their own real estate license thereby eliminating the need for a middleman.

Source: www.orlandosentinel.com