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%
down 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
Jeanette Fisher
http://www.articlesbase.com/business-articles/fixing-and-flipping-houses-for-high-return-on-investment-capital-1484.html