People are often stunned about the possible profits that can be made in "house flipping". House flipping describes the process of buying a piece of real estate, fixing it up, selling it and then doing the same process again with a different object. If done right the profits made from such a transaction can go up into hundreds of thousands of dollars. People reading all these stories about the real estate success of others wonder how that particular person was able to work out such a great deal.
If you are interested in house flipping there is a nice trick that will help you to increase profits. It requires to look ahead and to be flexible when it comes to investing money into the next real estate object. Most people doing house flipping buy an object, fix it up, and then sell it. Once the object is sold they move on trying to find the next house to be fixed up for their venture. That’s where the successful entrepreneur in house flipping works differently. While the ‘normal guy’ does not want to spend the time looking for the next object while still working on the current house, the more successful house flipping entrepreneur works on the current house as well as he searches the market for the next AND second next piece of real estate.
By lining up the projects this entrepreneur saves time as well as he shuts down the competition quite early. He can move from one object to the next one seamlessly. He can also book sub-contractors and get estimates for work he does not do himself. As he is not under any time pressure he can get as many estimates for a particular job as needed. This is a critical point as it can mean significant savings down the road.
By planning ahead the more successful house flipping entrepreneur brings house flipping to a more professional level. This separates the beginner from the professional and can mean several thousands of dollars in difference on the bank account at the end of the year.
An additional step to more success in house flipping is to build a network of professionals. By joining forces with a real estate agent who is willing to give up the normal fees associated with buying and selling a house can make a significant difference. The real estate agent also has early access to new objects that get listed on the market. It is easy for this professional to check for low price objects and to notify the house-flipping entrepreneur. Together they can evaluate the object and decide on a certain strategy.