Whether you are flipping property part time, or full time as most people nowadays are finding out just how profitable it is, then you will most definitely be flipping a foreclosure to profits. You will have to follow the 3 golden rules to foreclosures if you expect to gain in, or all your efforts will have been done in for nothing and success will be short coming to flipping properties.
1. First and most importantly you must study your market and get to know it like your best friend. Now, you can learn by yourself by concentrating and understanding what the selling prices are for in your area, what properties feature loose money which increases the price of property and what the people are looking for. Although this is somewhat a gift, or talent that accompanies a certain measure of experience and time and know how, over time you can squire this talent, Look into all the properties and which exact areas houses are selling like fast and furious and which are sitting and not moving. Find out if this is a financing issue and if this has slowed down the housing market. As always find out what the people are looking for and a way to supply that demand if possible.
2. One of the most attractive deal will come to you in the nature of a financial problem forcing a home owner to sell. You need to look and be able to tell this kind of situation because it may mean an opportunity for you. When selecting foreclosures that come your way for flipping, you must be able to evaluate and gauge an the spot quickly which properties that are bad can be turned into a profit with little and inexpensive repairs. A good rule of thumb is to associate the property as what it can be rather than what it is now. By making minor cosmetic changes to the interior and exterior, paint, cleaning the yard and taking care of the lawn can reap you great rewards in the end. Once you know what the prospective buyers are wanting and willing to pay for and what raises the value of the property you know exactly how much of an investment you will need, and what profit you can expect out of the deal. If you make sound decisions based on good discretion then you may be on your way to financial freedom sooner than you expected.
3. There will be times when an investment goes bad and the turn around is slow to non existent. All means stay away from houses that need extensive repairs to plumbing, electrical, foundation and structural areas of the home. To many people have thrown away good money just because it was there. Know when to get out of a investment and take your losses and try making it up on a better venture. With time and experience you will acquire that sixth sense of knowing which houses will flip easy and which ones to stay as far away as you can get.
Using the above three rules you can find a suitable foreclosure to flip for profit. However, be warned that it is not done overnight and may be some hidden obstacles along the way. Though for some this is an inbuilt talent, there are many instances where people were left waiting for years because they misjudged the salability of a home. You will need to activate and develop the inner sixth sense which will tell you which house is good to flip and which is not.
By following the rules to the letter you will no doubt make profits flipping foreclosures. All it takes is your time to get the experience to and put that talent to use and by doing the research and follow-up on your market you will have the ability to know a good property flip from a bad one.
Chet Holcomb provides all the essential information you will need to Flipping Over Property at my web address and encourage you to read my ebook Flipping Property for profits and using Real Estate Software that will organize your property management tasks for greater returns on your flipping property investment.