Learn How To Invest In Real Estate

Posted onFebruary 02, 2012 - 2:35 am by Admin | 0 Comments

The fix and flip strategy requires you to purchase a home—whether it is a distressed home, a foreclosure, or a home owned by a highly motivated seller willing to give you a huge discount—fix it up, and try to sell it for a profit.

Thanks to the big box home improvement retailers, we live in a do-it-yourself society. Making home improvements yourself is so much cheaper than paying someone else (usually a contractor) to do the work for you. However, after learning how to update plumbing and electrical systems, frame, hang drywall, and any number of other home improvement projects doesn’t make you a professional in any of those areas. Many do-it-yourselfers get the bright idea that if they can fix a few things around their own house, they should enter the fix-and-flip investing market to make a few extra bucks outside of their regular job. Most people don’t realize that this is one of the most dangerous and risky forms of real estate investing out there.

The Premise

In the recent past, some people actually made money flipping homes. Back in the days home prices would inflate 5 to 10 percent in just a few weeks, a person could purchase a house, slap a coat a paint on all of the interior walls, clean up the yard, plant a few flowers along the foundation, do a little updating in the kitchen and bathrooms, sell the home again 6 to 8 weeks after purchasing it, and make a $20,000 to $30,000 profit.


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