Flipping PropertiesAre you interested in flipping properties for a profit, not losing your shirt? Keep reading.

Flipping properties is the process of taking a distressed property, rehabbing it and selling it for a profit quickly. Preparation, time management, a good eye for a deal and above all speed is vital to your success flipping real estate. Here’s what you need to do to be a successful property flipper.

 Educate Yourself

You don’t have to take the time and spend the money to become a finance expert, real estate appraiser or real estate agent, but you do need to learn as much as you can about the industry and your individual market. Join professional organizations, take online courses and find a mentor. Investing in real estate is a business, and in order to be successful, you need to do what it takes to succeed in the business world. That means making the right connections and educating yourself.

Make Use of Multiple Methods to Find Deals

Most successful flippers don’t use just one method to find deals. They use everything they can to find good investment properties. That could mean working with a local investor, retaining a real estate agent or even mailing out postcards with “I buy ugly houses” emblazoned on the front. You cannot wait for a property to go up on the MLS. Once that happens, the chances of buying a property cheap are all but gone.

Learn Your Market

Knowing your market is more than doing a comparable sales search. That takes five minutes, and anyone can do it. If it were that easy, everyone would be flipping properties. Learning your market involves taking the pulse of the buying public and discovering what they want and are willing to pay. It involves familiarizing yourself with the problems associated with properties in areas of your market.

Does a particular neighborhood have issues with termites, crime, shifting foundations? Does the market pay more for a certain style of house? What is the reputation of the builder? Is he known for using substandard materials? Is the neighborhood on the way up or the way down? This level of local knowledge cannot be learned on the internet. You have to get out and talk to people.

Price the Property to Sell

Price your flip to sellSpeed is the essence of being a successful flipper. You have to have a plan in place to acquire the property, fix the property and sell it quickly. The last thing you want is to be stuck paying a note on a property. You have to have contractors ready to go when you close, and you want to price your property to sell.

You should be pricing a home 10 percent under market value to sell it quickly. If you run the numbers and realize you cannot make your target profit after acquiring, fixing and marketing the property, walk away. Don’t buy the property. After all, you make money when you buy a property, not when you sell it.

Does all this sound like too much to do on your own? It is. Most successful flippers have a team of people they work with on a regular basis. Investment consultant teams can help you find that perfect property, work out a plan for fixing and upgrading the property and help you to market it to sell quickly. There’s no need to go it alone – especially when you are just starting out. Even if cash is tight, investing in a team of experts will pay dividends in the end.

by, Jonathan Williams: EquityBuild News Contributor