House flipping is a popular form of real estate investment which involves improving a property to selling at a profit. Many savvy investors and DIY enthusiasts successfully make money flipping houses, but it’s not always as simple as it seems.
If you’re interested in learning more about house flipping, here are the basics to help:
Flipping a house basically means investing time and money into improving the house with intent to sell it immediately rather than live in it. Many investors who flip focus on buying and then reselling one or more properties in a short time period. Flipped homes often sell for much higher than their original market value.
Flipping homes may seem like a simple way to profit in real estate, but there are certain factors involved in being successful. One of the main factors is timing. To profit on a flip, you need to complete the necessary renovations and sell as soon as possible.
If your flipping process costs more time and money than you expect, you can quickly burn your potential profits. This also counts for how long the property stays on the market when finished. The longer it takes to sell the home, the longer you’ll have to pay utilities and other expenses that come with it.
Another major factor in determining whether a flip succeeds is the state of the real estate market. The market conditions need to be perfect to turn a profit buying and reselling properties. Even if you’re able to complete your work quickly, a competitive buyer’s market might cost you in lost time.
Additionally, you’ll need an excellent real estate agent who can help you sell as soon as possible. While you can certainly take a for sale by owner, or FSBO, approach, it may be worth your money to hire a professional to assist you with the sale.
Real estate investors who enjoy home improvement work are often the most successful house flippers. Knowing what improvements to make - and completing them quickly - is key to profiting from this strategy. With the right knowledge and market savvy, flipping houses can be an excellent way to make money in real estate.
Terese Ferrara is a long-time resident of the Bay Area and has been a partner with The Goss Real Estate Group for many years. She and her husband raised their two daughters in San Jose, where she successfully continues to build her real estate career.
After earning a bachelor’s degree from San Jose State University, she went on to teach in the San Jose Unified School District for 9 years. Transitioning to real estate was a logical choice, utilizing her patient demeanor to educate all levels of buyers and sellers. Knowledge and experience demonstrate her vested interest in delivering the highest level of care and professionalism to every client. She consistently strives to exceed her client’s expectations throughout the entire real estate transaction and remains a trusted advisor long after each close.
As a board member on KW Bay Area Estates’ Associate Leadership Council (ALC), she aids in support of culture and professional development strategies for over 180 associates. Terese is also a Director for the Santa Clara County Association of Realtors Foundation, which supports community service initiatives in Silicon Valley.
Terese is the consummate real estate professional dedicated to providing unparalleled service to her clients through ongoing training and education, keeping her on top of the dynamic market and latest real estate trends. Her high-touch approach coupled with honesty and integrity support her commitment to her client’s real estate needs.
