Fix and Flip: The Real Secret Behind Real Estate Investing Riches

It’s a fact, more millionaires have been made through real estate than any other money making vehicle. But have you ever wondered how real estate investors actually go about making money investment in properties?

Essentially, there are several ways to make money with real estate. One of the tried and proven strategies is a method affectionately known within the real estate investing circles as ‘fix and flip.’

Fix and flip is a real estate investing strategy that allows you to make a profit by finding cheap, distressed properties, fixing them up and then selling them for a higher price.The strategy works just as well if you can find financially distressed homeowners.

After successfully negotiating with a motivated seller, your objective is to gain control of the subject property by either buying it outright or by putting it under a contract with favorable terms that allow you to execute your most ideal exit strategy — fix and flip.

These days it’s so easy to find distressed properties as well as financially distressed homeowners. This is largely due to the weak economy we’re experincing right now.

However, what seems to intimidate most investors from taking advantage of the current wide spread investing opportunities is their inability to figure out the “how do I buy or gain control of the property if I don’t have the money to begin with?” part of the puzzle.

I’d like to share with you one secret that most successful investors use time and time again to make money regardless of how much money they might or might not have in their bank accounts.

You see, ‘fix and flip’ investing works much more effectively when you have funding to back it up. It just makes it that much easier. Leverage investment property loans to get started. Investment property loans are essentially private loans made out by other successful investors who are no longer involved in the day to day property investing aspects of the business. These veteran investors have deep enough pockets to lend some of their money to active fix and flip investors.

One good thing about ‘fix and flip’ loans is that they are much more flexible than traditional or conventional bank loans. The number one reason being the fact that with ‘fix and flip’ loans, the loan is secured by the property. Most programs do not even check credit.

In order to increase your chances of getting an investment property loan, you always want to make sure you buy your deal below market value. You should also ensure that you estimate your repair costs accurately. In addition, you want to make sure you are buying in a neighborhood that is desirable. Your investment property should not have any major structural damages. Barring any of these short comings, securing an investment property loan should not be that difficult.

You can get started right away, buying, fixing and flipping properties using fix and flip loans.This is the easiest and shortest path to making riches in real estate.

Comments are closed.

Tags

Freelance Web Designer | Web Design | WordPress | Hong Kong