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Fixing And Flipping
Houses For High Return On Investment Capital
|Many real estate
investors make $5,000 to $10,000 or more by flipping houses.
These investors buy a home from a distressed seller and resell
it quickly for a profit. Just because a seller has serious
problems like a pending foreclosure or divorce doesn't mean the
house is a fixer. Many distressed sellers offer prime houses in
perfect condition discounted for a quick sale.
Distressed sellers jump at the chance to get out from under their
overwhelming problems with an offer to close in ten days. To
purchase a home quickly, you need to be prepared to offer cash
or a have secure loan in place with a reliable mortgage lender.
Other real estate investors prefer to buy fixers from distressed sellers.
Distressed fixers present the best investment to make the
highest return on your money. For instance, if you put 5 own on
a $200,000 home, spend $5,000 fixing the house up, and another
$3,000 in payments, your cash investment totals $18,000. If you
sell the home for a $70,000 profit like many real estate fixers,
you can see that your return on your investment of $18,000 for
two months exceeds most other types of investments.
This investment plan assumes that you have the knowledge and skills, time to
work on your fixer, and that you sell the house as soon as its
finished to a qualified buyer. Home improvement centers help you
with how-to classes, brochures, and advice. You need to give up
your free time--TV, parties, leisure activities and work on your
fixer. You could hire workers, but contractors and laborers work
slowly and eat up your profits.
The last part of the equation, selling your house quickly to a qualified
buyer means you need to do your homework. Many investors seek
free help from a loan officer to price the house right and to
qualify their buyers. These investors earn the sales commission
by selling their houses by owner.
The most important issue, how you fix up your house, ensures that you
quickly attract a buyer willing to pay top dollar for your
transformed property. Investors using Design Psychology
strategies for fixing houses sell their homes, for more than the
asking price, three hours after putting the yard sign out.
Whether you want to make money investing in real estate by flipping or
fixing houses, you need to understand your market. To get
started in your real estate business, go house shopping. You'll
soon learn how to pick up a flip or a fixer and be on your way
to making a high return on your investment capital.
Copyright (C) 2005 Jeanette J. Fisher. All rights reserved.
About the author:
Jeanette Fisher, author of Sell Your Home for Top Dollar--FAST!
Design Psychology for Redesign and Home Staging, teaches Design
Psychology. She also wrote Doghouse to Dollhouse for Dollars and
http://www.doghousetodollhousefordollars.comFor a free
report, "Design Psychology for Selling Houses," go to