You’ve heard of “analysis paralysis?” It’s a disease for many would-be investors. While you don’t want to dive in blindly, if you have done your homework and have found a good deal, at some point you have to just go for it. If you can’t seem to take the plunge, ask financial advisors, like the ones at Hard Money Lenders Arizona to help you make progress. Get involved with your local real estate investment club, or find an investor who can act as a sounding board. House flipping is, essentially, buying a house or property with the intent to sell it for a profit.
There are a lot of decisions to make from the beginning. Where should you buy? If you purchase a house in an up-and-coming neighborhood, you’re banking on the neighborhood increasing in value. If you decide to buy in a new development, you’ll want to attract higher-end home buyers who want the luxury features and space offered in the suburbs. If all goes well, you could make a nice profit. But if something goes wrong — faulty budgeting, timing issues, a crime spike in that up-and-coming neighborhood — you could be stuck with a house you can’t get rid of. So much in house-flipping depends on the real-estate market, which we all know is cyclical. During a boom, flippers have the upper hand and can almost name their price in some areas. But during a slow period, many of these fixed-up homes can sit on the market for months. Once you know where you want to buy, the next step is deciding what type of property you want to purchase. If you go for a fixer-upper, you’re committing to improving the home, which takes time and money. If you buy a foreclosed property in an auction or from a bank, you could get a bargain on a vastly underpriced house. But remember that if the previous owners couldn’t pay the mortgage, they probably couldn’t pay for the upkeep, either — so you might have to deal with a rodent infestation or a leaky roof.