They say that a real estate investor cannot aim for big money until and unless he/she learns the deep dark secrets of property flipping.

Though many consider it a gamble, successful flipping is what that makes the business boom for an investor in the current state of the market. However, understanding the market situation is the first step that can lead to a successful flip in the coming few months. The inventory is tight, choices are tough and the buyers are getting choosier with each passing day – what’s next?

Property Flipping Gold

A little attention to the trends of the market proves that flipping the right kind of property in the right location can be extremely profitable for an investor. But how can one bank upon the fact that a particular property will spell success and strike a chord with the most finicky of buyers? And how can the risks of loss get decreased?

Here are some golden secrets that will guide you in the right direction. Take a look:

Identify the Market’s Trends and Traits

First things first, it is important to assess the current situation of the market in detail before you start thinking about buying let alone flipping a house. Here are some key facts about the real estate market in spring 2013:

•    The real estate market is on the rise, with many new buyers looking for profitable deals.

•    As the summer season approaches, rental property is getting stronger than ever particularly in vacation spots and coastal regions.

•    With the inventory getting tighter with each passing day, many builders are re-entering the scene and new construction is on the cards.

•    However, building and renovation charges are looking at a higher level as compared to the figures in the last few years.

•    Foreclosure property is extremely profitable for investors; however, a backlog in the properties coming to the market is being seen as a large majority of them are still being upheld by the banks and lenders.

New Construction on the Way – Now is the Best Time to Flip!

A successful flip is always quick and fast – the longer the property stays in the market, the higher is the chance that it will go in a percentage of loss. The maintenance and renovation requirements needed to spruce it up prove to be an added burden for the investors. With new builders coming in to the market, it is best to sell off your property when the demand is high. Newer apartments and construction of new high rise structures may falter the appeal of older homes on the block in the coming few years.

Acquisition is the Key

Quality acquisition is the call of the day at the moment, and a large number of investors are capitalizing on the sheer supply of foreclosure homes.

Foreclosed properties that are still not constructed completely are the main money spinners for investors –you can get a large amount of discounts on these and sell them off at a good price in the coming months.

Rentals are also a great option – if you are not ready for property flipping at the moment, you can always wait up and analyze the market while a sizeable income through rentals keeps coming your way.

by, Paul Cook: EquityBuild News Contributor