House Flipping

Some people gamble, some invest in a new business, and others put money into stocks and bonds. Then there are those that flip their homes. For those who are unfamiliar with the term, house flipping refers to buying a fixer-upper home, renovating it into a Brampton real estate gem, and then selling it off in hopes of earning a profit. Just like gambling, there are winners and losers in this game. Many profit and many lose, so how do you determine whether to jump into the game?

Any Annex real estate agent will tell you the most important thing to determine before jumping in the game is to know the rules. Those who go into house flipping without any real idea of the time, work, and investment it takes to effectively find and reveal your diamond in the rough can easily get burnt big time. Even professional flippers understand that there's always a chance they may not get a positive return on their investment. So what can you do before throwing your chips on the table? Consult the professionals. The most successful flippers rely on professional friends, colleagues, and associates for their advice and assistance to make sure they walk into an investment wisely and walk out of it with a profit.

Once you've got a good idea of what it takes to be a successful player in the game, what's the next step? Finding the right house, of course! It's time to scour the market for that perfect little fixer upper to take under your wing and turn into the prize catch of the real estate scene. What to look for in a prime fixer upper can be a fine art, and those who know what to look for are the ones who reap the biggest rewards. Always take into consideration just how much you're investing not just in the property, but in the renovations it will need. Otherwise, you'll end up with a money pit that will inevitably eat up your investment, your time, and your patience.

Even if you've followed all of the rules, played the game like a shark, and turned a rag-tag shanty into a marvelous mini-mansion, there is an X factor out there just waiting to ruin everything you've worked for: the real estate market. Just like stocks, understanding the market and how to read its fluctuations can be a make or break part of successful house flipping. Buying low and selling high is the key to earning a big return, but when the real estate market turns on a dime, knowing how to react can save you thousands of dollars in the long run.

Though it can be a tough game to win, any successful house flipper will tell you that what you get as a reward can make the struggle very much worth while. If you play it smart, know your investment from its value to its vents, and keep on top of the market waves, you'll walk away from the table with some big chips in your hand and the knowledge and confidence to play the game again. If you would like the opportunity to discuss the real estate trend and housing options, speak with the real estate pros at patrickrocca.com or call 416 258 4351.