The Truth About Property Flipping
Real estate is often advertised as the hot way to make quick money. While investing in property can be extremely financially rewarding, it takes hard work, patience, and perseverance to be successful.
It's easy to fall into thinking that real estate will immediately bring you financial security. The news media encourages this belief with stories about people who made it big in real estate.
The best and most important thing you can do as a real estate investor is make solid plans before your first investment.
The way home flipping is described, it sounds like all you have to do is stumble across a random house, buy it, and fix it up. In actuality, you have to put as much work into it as you would into any other job: writing a budget, making lists of the kind of investment you're looking for, and evaluating potential houses to see if they are a good fit for your plans. You are very unlikely to be successful without such a plan.
Your budget should include how much money you can afford to keep tied up in a home (you need to have adequate cash flow to pay for renovations, property managers, or other expenses) and how much time you can afford to spend dealing with this property. Sometimes a real estate investment will take up to twice as long to come to fruition as you expect, so it's important to make sure you can wait that long to see profits.
MYTH #3: You can run a real estate business by yourself.
You also need to make sure you research each property before you purchase it in order to ensure that it is a good investment.
This is also why it's important to research properties prior to purchase. Learning about the property's history, the type of neighborhood, and how costly it will be to maintain or repair will help you avoid making foolish purchases.
In order to be successful at real estate investment, you need to have a lot of patience. Real estate investment can make you a lot of money, to be sure, but like all legitimate business enterprises it takes time to establish yourself. Don't go into it expecting overnight success.
House flipping--buying low and selling high--is popular thanks to the news media. However, the entire real estate investment industry does not revolve around this practice. Many people rent out properties or convert them into bed-and-breakfasts. It is a good practice to have a back-up plan for making money off a given home in case renters aren't interested or you can't afford significant improvements.
Real estate investment can make you plenty of money. But it is not a get-rich-quick scheme or a magical cure to your economic problems. It is a job, and you have to put hard work in to get the results you want. If you plan intelligently, you can make a comfortable reward off of your understanding of the real estate market. - 23210
It's easy to fall into thinking that real estate will immediately bring you financial security. The news media encourages this belief with stories about people who made it big in real estate.
The best and most important thing you can do as a real estate investor is make solid plans before your first investment.
The way home flipping is described, it sounds like all you have to do is stumble across a random house, buy it, and fix it up. In actuality, you have to put as much work into it as you would into any other job: writing a budget, making lists of the kind of investment you're looking for, and evaluating potential houses to see if they are a good fit for your plans. You are very unlikely to be successful without such a plan.
Your budget should include how much money you can afford to keep tied up in a home (you need to have adequate cash flow to pay for renovations, property managers, or other expenses) and how much time you can afford to spend dealing with this property. Sometimes a real estate investment will take up to twice as long to come to fruition as you expect, so it's important to make sure you can wait that long to see profits.
MYTH #3: You can run a real estate business by yourself.
You also need to make sure you research each property before you purchase it in order to ensure that it is a good investment.
This is also why it's important to research properties prior to purchase. Learning about the property's history, the type of neighborhood, and how costly it will be to maintain or repair will help you avoid making foolish purchases.
In order to be successful at real estate investment, you need to have a lot of patience. Real estate investment can make you a lot of money, to be sure, but like all legitimate business enterprises it takes time to establish yourself. Don't go into it expecting overnight success.
House flipping--buying low and selling high--is popular thanks to the news media. However, the entire real estate investment industry does not revolve around this practice. Many people rent out properties or convert them into bed-and-breakfasts. It is a good practice to have a back-up plan for making money off a given home in case renters aren't interested or you can't afford significant improvements.
Real estate investment can make you plenty of money. But it is not a get-rich-quick scheme or a magical cure to your economic problems. It is a job, and you have to put hard work in to get the results you want. If you plan intelligently, you can make a comfortable reward off of your understanding of the real estate market. - 23210
About the Author:
Arranging investment property loans has become increasingly difficult throughout the credit crisis, and not many are under the illusion that things will become any easier quickly. The property investment market is still a risky proposition, and proper planning needs to be undertaken.
posted by X - Men @ 1:42 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home