With the decline in trust of banks and the stock market, more and more Americans are looking toward real estate as a source of investment income. With sales of existing homes on the rise in northern Mississippi, now is a great time to get involved in flipping property for a profit. Although there is much potential for profit, there is also potential for losses if the investor goes into the market unprepared. Armed with the counsel of a real estate investment company, even first-time investors can confidently become successful house flippers.
When considering investing in real estate, understanding the trends of the geographically specific market is central. These trends must be studied and understand going back years and projecting into the future. Such trends take into account more than just purchases and sales, they account for all of the factors relevant to the individual investor and their experience in flipping. Real estate investment firms are built on understanding and predicting such trends, which allows them to advise clients on when and where to purchase property in order to meet the specific client’s short and long-term financial goals. Whether you are new to the area or have lived in Northern Mississippi your entire life, the real estate specific experience of an investment company will open your eyes to opportunities and steer you clear of gilded deals.
Once you have decided to invest in an area, it is key to create a plan that takes into account your specific financial situation and provides for the inevitable contingencies of flipping houses. Many first-time flippers fail simply because they believe they have taken all relevant financial consideration into account, when in fact, they have not. Long before completing a transaction, a real estate investment firm will work with you to understand precisely where you stand financially and advise you on the hidden costs of flipping that are not shown on television, referred to as “holding costs”. Such costs include taxes, utilities, interest, and true renovation costs vs returns. Working as a team with a firm, you can be confident that you are seeing the whole picture before investing in a property.
Purchasing the property is only the first step, next you must renovate and improve the property before you can reap a profit. This is the most crucial stage of house flipping and it is also the riskiest, particularly for first-time home buyers. Renovations become a race against the clock, but excessive haste can lead to delays and big losses. A real estate investment firm has real experience with renovations that increase value and those that do not. They are able to advise you on what repairs to make and which to skip in order to maximize profit and minimize loss. In addition to supplying a plan for renovation, these firms have working relationships with a network of professionals who can be relied upon to get the work done on time and on budget. Should issues arise, and they will, this same network can quickly connect an investor with a solution, saving valuable time.
Once your renovation is complete, it’s time to realize your profit. Time is still money, however, and quickly matching your property with a buyer who is ready to pay is essential. The longer your property sits unsold, the more money you will spend on holding costs and the less likely that you will be able to sell for maximum profit. Just as the real estate investment firm matched you with a seller, so they will match you now with a buyer. Because you have a working relationship with the company, before your property is ready for sale, your contact will already be pooling potential buyers. Once a match is made, you can feel proud of a job well done and start planning your next investment.