How Flipping Houses Works

April 15, 2010 | Posted by admin | 1 Commen(s)

The NFAFN Guide to getting Started with Fix and Flip Real Estate

House flipping has become a fun and exciting pastime for many people who are willing to research and purchase a home in need of repair, fix it up and sell it for a profit. The enticement of generating income has been enough to draw the interest of those who want to learn more about how the process of fix and flip real estate works and what to expect along the way. Here at the NFAFN network, you can get a lot of excellent house flipping tips – which is wise, since as an investment strategy, flipping houses involves some financial risks, and there are no guarantees. However, for those willing to work carefully with a solid business plan, a person can make a tidy profit when they flip real estate. You’ll find plenty of resources here at our site, from our discount store to our easy to search foreclosure listings; when it come to home remodeling and foreclosure flipping, we make it easy find what you need. You won’t want to miss our series of true life house flipping stories. It’s our hope that with a little help from your network of friends here at NFAFN, you will have your own success story to share with us.

"Flipping" Defined

The first lesson anyone learns in business school is to buy low and sell high. This is the essentially what you are doing when you either fix and flip real estate in need of repair or improvement, or engage in foreclosure flipping (which may involve some repair or may not, depending). In the former case, you are seeking properties that have become run down and may require a great deal of repair work; the latter simply involves finding a "distressed" property that has been repossessed by the bank, buying it at a discount then turning around and selling it to a third party for a profit. Search property for sale in your local area using the NFAFN search bar on the main page of the site.

Where To Begin

Whether you want to flip real estate that is in good condition but has been foreclosed on, or are looking to fix and flip real estate in disrepair and in need of rehabilitation, there are a few good sources through which you can find suitable properties:

• The NFAFN find foreclosure search
• Local banks and mortgage companies
• Real estate auctions

Get started on your search for foreclosures today. Simply select the find foreclosures tab and enter your local zip code to receive instant results from our extensive network of foreclosures in your area. Local financial institutions usually maintain a listing of foreclosed and available properties in your area. When it comes to real estate auctions, your best source for fix and flip real estate opportunities are local ones. There are many real estate auctions online, and some properties are even available through online auction sites such as Ebay – but be aware that these auctions are open to anyone, anywhere on the planet. This means bidding is likely to be competitive, and you may not get as good a deal as you might at a local live auction.

Financing Your Investment

If you feel you do not have the financial wherewithal to invest in a property for flipping, you're not alone; few people do when they start in to flip real estate. However, there are short-term mortgages available for real estate investors. These are likely to have a higher interest rate, but since ideally you will be turning the property around quickly – and thus pay off this mortgage immediately – this should not be an issue. Be sure to browse our easy to search database to help find the right lender for you.

Watch Out

If you are planning to do foreclosure flipping on properties that do not require rehabilitation, it is imperative that you check your local property and real estate ordinances. Some local governments have tried to discourage the practice of flipping by requiring that the buyer remain in the home for at least six months, and in some cases a year. This is less likely to be an issue with properties needing repair, as you will likely spend several months doing renovations before you are ready to sell.

The key to flipping houses successfully is to plan ahead – and there is no better place to educate yourself on this lucrative practice than right here at NFAFN.com, where you can learn everything you need to know about flipping houses.