fbpx
MORE GARY WONG: SHOWS VIDEOS BLOG

Real Estate Flipping for Beginners

So you know the basics for finding the bargains and learning about rental passive income, right? What if you find a great property at a great price, but the rental income is not good for generating positive cash flow?

Real Estate Investors will still look at it as a great opportunity… to buy and flip. Like I mentioned in another article, if you make offers often, you’ll have a greater chance of buying properties below market value.

In your search for great deals, you’ll often come across properties that need some work. You’ll come across homes that are a mess and that typically turn away a majority of buyers. Where typical buyers see them as tear downs, a Real Estate Investor sees these as gems.

They know that because the property doesn’t show well, they’ll be able to negotiate a better price with the seller. Then once they buy the property, they’ll hire contractors to begin renovations. They often buy the property including the furniture and junk and either sell the junk or even use them to barter with contractors for renovation work.

Sometimes, sellers are happy to include their furniture and junk with the sale so they don’t have to pay someone to move it or get rid of it.

The key to profitably buying, renovating and flipping is to buy the property well below fair market value. It is very difficult to flip for a profit if you buy the property at market value or even a little bit below market value because the market fluctuates.

Buying well below market value provides a safety cushion to ensure you make money even after you pay for renovations, pay a Real Estate Agent to sell it, pay property transfer tax and legal fees.

Once again, if you don’t know how to calculate the numbers, it’s best to hire a Real Estate Professional to help you find the deals and analyze the numbers.

WordPress Image Lightbox Plugin