This entry was posted on Saturday, August 18th, 2007 at 10:07 am and is filed under Housing Bubble, Buy and Sell for Less. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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August 18, 2007
Realize Flipping is Hard
Contrary to what many reality shows will have you believe, the average person will have difficulty purchasing a home and then immediately selling it for more. The key to successful flipping, and something that most shows don’t even mention, is to buy low…very low.
Money is made at purchase, and successful flipping is a matter of finding a property that is being sold for a good deal less than what it is actually worth. Locating such a home takes hard work, buying it without wasting too much on commissions and loan fees takes genuine financial talent, and finally, fixing it up and selling it for a profit all within a short time.
Can it be done? Sure, but it with today’s real estate market, it is certainly a risky proposition for a first time flipper. Many real estate shows will merely show a home selling for more because it appreciated in value over a year’s time. This is not true flipping, it is getting lucky through speculation. Just like day trading, many people get burned looking for quick easy money flipping.
If you want to make money in real estate, buy and hold. It may take a decade, but chances are you’ll sell for a lot more than you bought for, and be able to pat yourself on the back.
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