Flipping Real Estate - Not for the Newbies

There are so many books, TV shows, free seminars and infomercials about how to make a fortune by flipping real estate that if you haven't seen these ads, you're probably in a coma. Sure, flipping real estate can indeed result in untold riches - if done properly. It can also result in bankruptcy and total long term financial ruin that's hard to recover from.

Everyone and their brother has tried their hand at flipping it seems. Unfortunately, it's a tough, non-forgiving business fraught with problems. If flippers aren't familiar with the construction industry or the real estate industry, the "flip" could be the worst decision of your life.

For anyone who insists he still wants to give it a try, this is actually the perfect time to try. Don't fool yourself, though. You need money. And you can't expect to get it all from a bank. Lenders aren't too keen on providing mortgages any longer for these deals because so many have gone bad in the past, even when the economy was thriving. Why? Because people who don't know what they're doing take too long to do the rehab and they find that the monthly mortgage payments owed every month on the property are too much to handle.

If you're determined, first you need to find a house that needs repair, that is being sold much lower than market value, and a house that has repairs that either you can do yourself, or get done at a reasonable cost. (Is your brother a plumber? Can your father put down tile?)

Don't waste your time or money with a home that's already in excellent condition. Adding things like hardwood and granite to a nice home isn't going to guarantee you a sale.

Good "flips" aren't always in good neighborhoods. Drive around to some low income neighborhoods. Find homes that have been neglected, left empty, or even totally vandalized. These can be found for pennies on the dollar. No matter what repairs you make, you'll be able to turn a profit at the sale. Just make sure you are making improvements consistent with that neighborhood. For instance, adding a pool in a neighborhood where most homes don't even have garages is just a waste of money.

There are still some cities where flips are almost impossible. Even the homes that are selling for less than a few years ago are still too expensive for many people to buy. Add thousands in improvements, and you just further priced yourself and potential buyers out of the market.

Want real flexibility to flip nearly ANY deal you want to do, including profitable pre-foreclosure deals? Want access to transactional funding? You can get all these crucial resources by going here Flipping Real Estate.