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Flipping or Fixing Houses for Profit

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					                     Discover 101 Amazing Real Estate Tips and Secrets



                       Flipping or Fixing Houses for Profit

What's the difference between a fixer and a flip?

Many real estate investors make $5,000 to $10,000 or more by flipping houses. These
investors buy a home from a distressed seller and resell it quickly for a profit. Just because a
seller has serious problems like a pending foreclosure or divorce doesn't mean the house is a
fixer. Many distressed sellers offer prime houses in perfect condition discounted for a quick
sale.

Distressed sellers jump at the chance to get out from under their overwhelming problems with
an offer to close in ten days. To purchase a home quickly, you need to be prepared to offer
cash or a have secure loan in place with a reliable mortgage lender.

Other real estate investors prefer to buy fixers from distressed sellers. Distressed fixers tender
the best bargains to make the highest return on your money. For instance, if you put 5% down
on a $200,000 home, spend $5,000 fixing the house up, and another $3,000 in payments, your
cash investment totals $18,000. If you sell the home for a $70,000 profit like many rehabbers,
you can see that your return on your investment of $18,000 for two months exceeds most
other types of investments.

This investment plan assumes that you have the knowledge and skills, time to work on your
fixer, and that you sell the house as soon as it’s finished to a qualified buyer. Home
improvement centers help you with how-to classes, brochures, and advice. You need to give
up your free time--TV, parties, leisure activities and work on your fixer. You could hire workers,
but contractors and laborers work slowly and eat up your profits.

The last part of the equation, selling your house quickly to a qualified buyer means you need to
do your homework. Many investors seek free help from a loan officer to price the house right
and to qualify their buyers. These investors earn the sales commission by selling their houses
by owner.

The most important issue, how you fix up your house, ensures that you quickly attract a buyer
willing to pay top dollar for your transformed property. Investors using Design Psychology
strategies for fixing houses sell their homes, for more than the asking price, three hours after
putting the yard sign out.

Whether you want to make money investing in real estate by flipping or fixing houses, you
need to understand your market. To get started in your real estate business, go house
shopping. You'll soon learn how to pick up a flip or a fixer and be on your way to making a high
return on your money.

Copyright © 2005 Jeanette J. Fisher. All rights reserved. (You may publish this article in its
entirety with the following author's information with live links only.)




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