Sponsored Links
Flip Videos
Loading...

Flipping Houses: Can A Real Estate Investor To Make Money?


Most likely the last thing on the mind of a real estate investor these days is launching a home. The housing market is soft and households are in a national inventory high. MSNBC recently reported that if everything would stop building homes in the U.S., it would take more than 10 months for households in the nation’s inventory to sell. Times are tough for sure, but that does not mean there is no money involved. Flipping houses is a strategy of investors to make money have been using for decades. Usually involves the purchase of a house and resell it for more than the purchase price. During the housing boom in recent years, turning was exceptionally easy. Investors may pick up a new or used home and turn it around in a matter of weeks to get a substantial profit. At that time, the market was soaring. The houses were easily sold and the proceeds were even easier to do. Now that reality has put back and the market is trying to fix this type of flip promises not kept up as it did in the past. Investors, however, can still make a profit flipping houses. Now more than ever there is an opportunity to pick up homes for a business and make profit from them. Real estate has a tax lien or is running can be collected well below cost. Houses can also be purchased at auction of goods and resold for profit. Along with the purchase of a house to flip the trading, investors can also go to fix the route. This technique requires the investor to buy a fixer. The investor hires someone to do repairs or make repairs on your own. When arranging the house, equity, is added which increases the value of the property. In turn, the house can be sold for a profit. The main downfall of this method is that it takes longer then if you were to buy a house in the discount and simply sell them at a market price. Now there’s a nasty little rumor out there that “flipping” houses is illegal. The fact is simply not true. Although there is no such thing as illegally flipping homes in the translation boiling up loan fraud, investors are well within their rights to buy a house and resell it for profit. Loan or mortgage fraud occurs when an investor buys a house usually in poor condition and makes some superficial repairs. The house is sold to unsuspecting buyers at an inflated price. These types of schemes are based on the collaboration of an investor, appraiser and mortgage broker. In 2006, the Department of Housing and Urban Development loan fraud addressed by creating new regulations to flip diversion within the Federal Housing Authority. Now, the seller must have the property for more than 90 days for buyers with FHA-backed loans to qualify for purchase. In short, the house flipping is not the money machine it was. The good news is, when done right, you can earn money doing it.

Omar Johnson is a successful Real Estate Investor and author of the home study course The Real Estate Investor’s Guide To Finding The Motivated Seller for more info http://www.findingthemotivatedsellers.com


Leave a Reply

hogan outlet hogan outlet online louboutin pas cher louboutin pas cher tn pas cher nike tn pas cher nike tn pas cher nike tn pas cher nike tn pas cher nike tn pas cher nike tn pas cher nike tn pas cher air max pas cher air max pas cher air max pas cher air max pas cher air max pas cher air max pas cher golden goose outlet golden goose outlet golden goose outlet golden goose outlet golden goose outlet golden goose outlet