Let’s face it, the concept of property flipping is considered passé by most investors, owing to the tough competition and receding prices in the property market. However, according to experts, the time for a change in the real estate investment scenario is definitely on the cards. In this aspect, property flipping is being considered as a bankable option.

flipping properties

If you are a first time investor looking to make big money off your first sale, there is a little homework you need to do. As per the recent data quoted by the National Association of Realtors, residential real estate is on a rebound and the sales figures are looking bright for a profitable flip in 2013. That being said, it is of extreme importance to choose the right property at the right time so that any major losses can be avoided.

Statistics by the National Fix and Flip Network show that a lot of people jump into the property flipping bandwagon without proper planning and research, and this leads to downright losses and even foreclosures in just the first six months.

If you too are stuck in a low inventory market contemplating whether or not to take a chance with property flipping in 2013, the following tips will surely help you out. Take a look:

  • Be Fast – and Proactive

The key to making a fast transaction is being fast and spontaneous in the market, with ample research on locality and repairs to back you up. Though maximizing on the profit is of importance, buying property cheaply and then selling it quickly at an attractive yet profitable price is what that makes the business shine.

A golden tip to work this way is to bank upon various houses and earn a small share of profit on each one of them, rather than pricing a single property higher and waiting for potential profits.

  • Cut Down on the RepairsReal estate investing, what to repair

A little tweaking here and there can definitely raise the value of the house, but don’t spend on extensive and expensive repairs. Get expert advice from a contractor before sealing the deal so that you can figure out in advance how much the repairs and maintenance will cost you.

  • Use the Right Channels to Find the Property

The best investors do not rely on just MLS listings to find the best houses. The competition in the market is increasing day by day, and thus you need to have eyes in every channel to get your hands on a good deal. Use non-traditional methods for more guidance and information.

Auctions are considered to be a viable choice, however getting in touch with a professional real estate investment company is one of the best options for a first time home investor.

  • Set a Timeline and Price Accordingly

Property flipping is much more than just buying a property and selling it away in a few days after some general repairs. According to experts, a successful and profitable flip may take around six months or even more depending upon the situation of the market. A 15% profit is considered to be nominal for a decent property in a good location, though the figure may fluctuate depending upon the market conditions and demand.

  • Learn When to Pass It On

The location and overall curb appeal of the house are some of the main factors that increase the attraction of the property and make way for a profitable flip. However, be wary of drop dead prices. Deals that look too good to be true are often a scam, or else in localities that have a history of attracting little buyers.

Research will be of extreme advantage in this regard – ask around form the locals, seek professional assistance or get help from resources on the internet to make the right property flipping decision and earn maximum profits on your first deal!

by, Paul Cook: EquityBuild News Contributor