Over the past five years or so, flipping real estate has gone to the forefront of real estate money making opportunities. However, flipping real estate is not for the weak, weary, broke, or inexperienced. It takes knowledge, time, dedication, an array of contacts and resources, and of course, money.

One common mistake many make is to think that any house bought at a low price is a good candidate for flip. This isn’t true. For instance, a home in perfect condition, purchased at a low price might already be maxed out. In other words, it isn’t going to be worth more unless very expensive renovations are made ‘ renovations that aren’t even necessary. And these can price the home out of the neighborhood.

What you need to find is a home that is in tough shape and needs repairs. It has to be in such bad shape that even ‘builder quality’ repairs will double its value. Of course, with this many repairs you will need to have the ability to fix them all in a short period of time for a minimum amount of money. Your goal is to fix and sell this home before your first mortgage payment is due!

If you are someone who knows nothing about construction, this is probably not the money making opportunity you had hoped. It’s fine to hire professionals, but without knowing what a good bid is, and without being able to assess the work being done, you could be wasting lots of money.

It’s also important never to buy property sight unseen. Too many beginners actually buy homes off the internet that are specifically marketed for ‘flipping’. Major problems will ensue if you do this. You buy a flip just like you’d buy a home you plan on moving into ‘ go see it! Bring a contractor, a roof inspector, and anyone else whose opinion you value. Forget your father and your brother unless they are in the construction business!

It’s always a good idea to bring an experienced contractor or at least a home inspector with you as you look at properties you are considering. Real estate agents are not trained and are not experienced in how to find properties for you to flip! They will sell you anything you want to buy; don’t use their ‘expertise’ to base this type of decision on.

Before deciding on a property, it’s a good idea to have a list of professional contractors to rely on in the case of an emergency.

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