Real Estate Flipping Basics
What is real estate development, or 'flipping'?
What is 'real estate speculating'?
Who can engage in real estate flipping?
How should I get started flipping properties?
First of all, I suggest to anybody who is serious about getting into the market, especially a market that's going south as we call it now, or a downward market, that they buy a property where you're going to be doing some work to it. You will need to be looking at houses where you're going to be adding some value to it. Anybody can learn how to do it. Between the home improvement centers, all the contractors that are out there, and a lot of the information that's out there on the web, it's actually very easy to learn, starting small, and learn how to do it yourself.
What kind of property should I consider for my first real estate investment?
When I tell people to start small when getting into real estate, all I'm really teaching them is how to take the money that they do have and match that with the size of the house they're going to buy. In other words, don't over extend yourself. Make sure you have enough money left over to actually make the repairs that are needed to the house, and start in maybe a transitional neighborhood. You're not going to be able to buy a big condominium in downtown Manhattan or in the best neighborhood in Milwaukee. You're going to have to go to a transitional or a fringe neighborhood. Find a smaller house, start with that. Make your mistakes on the first property that's a small one, because they're smaller mistakes and there is a big learning curve. Once you've done your first house, it is so much easier to get a second and third. So buy the first house, and buy it small. Don't spend a lot of money on it and be smart.
Should I get a real estate license before I start flipping properties?
A lot of people ask me "Hey, why don't I become a real estate agent, and get my license because then, I'll save so much more money when I go to buy a house"? That's ridiculous! That's like saying I'm going to go to medical school, so that I can perform my own brain surgery. I am a big believer in working with the experts. You have real estate agents, and they are the experts. Let them do their job. You handle looking for the house and working with them to find the right one, and then going to work once you buy it.
What are the legal considerations in flipping property?
What kinds of property may be 'flipped'?
Why is real estate flipping so popular right now?
What types of home upgrades most enhance resale value?
