House-flipping is currently in-demand, and affordable prices combined with a number of foreclosed houses on the market has made for eager people looking to buy and sell - all within six months. Investing in real estate can feel overwhelming at times, but take the advice of some seasoned professionals and become an experienced flipper in no time.
Make the most out of the changing landscape
The housing market is trending upward, and there are many positive indicators that now might be a good time buy and sell. Ideally, real estate will continue to climb following the economic downturn and bubble collapse from the late 2000s.
If this is the case, as many signs indicate, current home buyers have the opportunity to sell when prices are higher and the demand is up. This could present more profit, and that makes home-flipping a desirable profession for many.
In order to do it well, buyers have to be educated. That means analyzing property data and market statistics to find the best prices and conditions for a quick resale, and some areas are prime for an investor explosion.
Take advantage of the opportunity
In some cases, investors have been determined to buy a property and hang on to it until the market improved more, according to CNBC. Now, it appears as if common sense says to sell, and sell fast.
"It's a perfect storm for flipping right now in many parts of the country because home prices are bouncing off the bottom," Daren Blomquist, vice president at RealtyTrac, told the news source. "That is something that flippers can catch on the coattails of and ride that wave as long as it lasts."
Steve Jones, owner of Los Angeles flipping company Better Shelter, told the news source that the competition is increasing, and over the last six months the profession has gotten more hectic.
He added that not every home is a win, something important to keep in mind for the novice investor. Some properties excel, and the profits soar. Others don't sell for as much money, so it is smart to prepare for some bumps and bruises along the way.
"Some homes you do really great, and some homes you kind of do OK. I have to keep my crews busy, so it averages out," Jones told the news source.
Learn from the professionals
The best investors and home-flippers don't start out on top. The ones that end up there often have some good advice for how they did it, and some tips for learning the tricky real estate market.
First off, look at real estate records. Crucial information about what the market is doing will really help figure out what properties to invest in, and Courthouse Retrieval System has the tools to provide easy-to-access data quickly.
Moreover, the California real estate field is seeing waves of improvements. Throughout June, equity home sales increased, and foreclosed houses made up a solid chunk of the total numbers as well, according to the California Association of Realtors. Total distressed sales comprised of more than 20 percent of all homes sold in the state for June, while real estate owned houses represented 6.6 percent, and short sales were at 12.9 percent.
One California investment firm, Praxis Capital, is thriving flipping homes in the state, and the leaders' experiences can benefit any fledgling professional, according to the North Bay Business Journal. Certain upgrades in a home do more for equity, and that means more profit after the resale.
"It goes back to the homebuilding days - we're adding value the old-fashioned way," Eric Peterson, a principal at the firm, told the news source.
Keys to his firm's success include staying on top of market trends, and focusing on large improvements, like adding rooms. The company also made smart choices about location, something property data can help new investors determine.