You want to be rich as fast as possible but while there are ways to make a fortune, most of them take time. Buying and selling stocks, starting a business, and investing wisely all require patience. There are a few faster ways one of which is called flipping which is basically buying real estate and selling it at a slightly higher price. It takes time for real profit unless done fulltime. Here is the story of what would most likely happen if you decided to try it.
Getting Started – Credit Where Credit is due
One day you decided to start flipping so first you got together some start-up capital and then made sure that you have good credit. You check your credit online with a site like Equifax. If it’s bad then you’ll find a company to consult with about repairing it. You do this because filing for bankruptcy can prevent you from buying a house.
Locating the location
Next, you needed to find a place to buy. Which you do after going over the listings on realtors’ websites, reading the classifieds in the newspaper, visiting craigslist, and just driving around.
The Process – Buy Bye
After finding something affordable you call a real estate agent and make an offer. While it’s a property of lesser value you know that the important thing is to own something. You end up having to borrow from a bank to buy it which is why you needed good credit. It takes a while but the owner gets back to you. As you’re negotiating things get complicated but the real estate agent that you hired explains the terminology and gets you through the process.
Selling Out
After you’d bought the property you relisted it at a 10 to 25% higher price than what you paid for it. You made sure that it’s safe and presentable without spending too much. You called your retailer and had him sell it with the profit, which should be around 10%, being put towards another property. You do this over and over upgrading to nicer places along the way while still remembering your financial limits.
Afterwards – Day in Day Out
It took a while before a serious profit was made. The most you got from flipping a house at first was around $100,000. By sticking with 3 bedrooms, 2 bath houses; which is what people are looking for, you assured that there were buyers. You watch the market for any fluctuations. After a year you start aiming for between $50,000 and $100,000 per flip. After making around $300,000 you moved in to things like strip malls and retail bays. You projected a professional look using things like business cards and a website. Through everything you remained careful because now these transactions involved serious money.
Flipping houses can bring in a lot of money but you have to take it one step at a time. Just remember to do it right and each home can get you closer to a better life.