Flipping Houses Make 30 000 A Month Flipping Real Estate

Flipping Houses Make 30 000 A Month Flipping Real Estate



Flipping Houses: Make $30,000 a​ Month Flipping Real Estate
Okay, you know the​ drill: purchase a​ house below the​ current market rate, make some repairs and​ improvements to​ it, and​ then turn around and​ sell [flip] the​ house to​ generate big profits .​
While the​ concept of​ flipping houses is​ nice, the​ reality is​ that so much more is​ involved in​ flipping real estate .​
Without the​ proper knowledge on how the​ process works, you could end up being saddled with a​ house you really do not want to​ own or​ end up taking a​ big loss on the​ sale of​ your property.
The real estate market has the​ potential to​ create huge profit windfalls for​ the​ savvy buyer .​
Here are a​ couple of​ tips to​ help increase your profit margin when flipping houses:
Buy low and​ sell high .​
How do you find homes to​ buy below the​ market?
1 .​
Create a​ free brochure titled 3 ways to​ avoid foreclosure and​ get cash NOW for​ your equity .​
Then, distribute your brochure to​ people who are currently in​ the​ foreclosure process and​ homeowners who are currently 90 to​ 120 days behind on their mortgage payments .​

By the​ way, one of​ the​ helpful tips in​ your brochure should be to​ call you for​ a​ quick sale.
You can obtain foreclosure information from your local court house .​
for​ a​ list of​ homeowners who are currently behind on their mortgage payments you will need to​ contact a​ credit agency - Experian.com, Equifax.com, or​ TransUnion.com .​

2 .​
Contact divorce attorneys in​ your area .​
Offer your home buying service as​ a​ resource to​ help clients liquidate their homes quickly at​ a​ fair price.
Now, before you get into house flipping there are five main points you must take into consideration prior to​ closing on your deal:
Acquisition Costs – Every home will cost you money before the​ deal is​ even finalized .​
Plan on writing out checks to​ your attorney, to​ the​ title company, government agencies – such as​ recording fees, and​ an​ application fee for​ a​ mortgage [unless you are paying cash], and​ other closing costs .​
Look into getting an​ option arm mortgage loan with a​ 1% minimum payment .​
This type of​ loan program can increase your cash flow by cutting your monthly payment in​ half!
These loans will also allow you to​ take a​ small piece of​ your equity and​ turn it​ into a​ tax deduction by creating deferred mortgage interest .​
Management Costs – During the​ period you own the​ home you can expect to​ shell out cash for​ property taxes, utilities, lawn maintenance, homeowners insurance, mortgage payments, and​ more .​
The longer you keep the​ home, the​ more expenses you will incur .​
Home Improvement Costs – Are you ripping out the​ kitchen? Laying new flooring? Putting in​ a​ new garden? Whatever repairs and​ improvements you make, are you certain that you can recoup these costs when you flip the​ house? Will the​ value of​ the​ house increase enough to​ cover your expenses?
Selling Costs – Once you are ready to​ sell the​ home, will you be selling it​ privately or​ through a​ realtor? Real estate commissions running as​ high as​ 6% can eat up your profits very quickly .​
In addition, you will need to​ pay an​ attorney to​ represent your interests and​ pay any other related expenses.
Capital Gains – a​ good problem to​ have is​ to​ make so much money off of​ flipping houses that you have to​ worry about paying capital gains taxes .​
You may avoid federal taxes, but your state or​ local government may assess a​ tax on you .​
Count on it​ especially if​ you live in​ a​ high tax area!
The deal you thought you made with the​ purchase of​ a​ house can quickly evaporate if​ the​ market turns cold or​ your expenses run too high .​
Carefully consider all five points before taking action and​ know your local real estate market inside and​ out .​
Yes, people do make tidy profits by flipping houses, while others lose out .​
Do your homework before jumping in​ to​ make certain that you understand everything before buying a​ house that you plan on flipping later.




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