Home Flipping for Investors
Amsterdam Holdings primary strategy with home flipping is long term capital appreciation, and cash flow. With that said, In 2007 the US subprime mortgage meltdown and resulting rippling repercussions had a dramatic effect on the housing market which created one of the best real-estate investment opportunities in US history.
In light of these circumstance, hedge funds, investors and others began to understand the opportunities that were being created and began working their way back into the house-market. We ourselves began gradually accumulating more real estate investment assets, which lead us to doing a number of real estate flips ourselves. Subsequently, we began assisting our clients with identifying real estate investment properties for the primary purpose of flipping.
Flipping homes for profit is the practice of buying a property at a lower price (typically below comps) and then selling it at a higher price as the market improves. Real-estate agents, brokers and developers sometimes do this on a professional basis, but individual investors with a reasonably high risk tolerance can also find substantial opportunities. It’s recommended in general to flip houses in an area that you understand very well. It is also recommended to have access to additional capital to invest in renovations to make the properties more attractive to potential buyers.
Basic Steps for Home Flipping
Initially, it’s critical to research the neighborhood in which you want to flip houses before considering investing. We recommend strongly to identify a real-estate agent or investor that have actually flipped homes themselves. Learn as much information about the area and residents such as their average salaries, work industries, and about the school districts. Discover as much as you can about the neighborhood that buyers are likely to ask about. Research price histories of the area to be better prepared when buying and selling houses.
Next, secure a property that fits your investment criteria and strategy. In a depressed real-estate market, one of the best ways to flip houses is to purchase a foreclosed home, renovate it, and then resell it at market price. During a rising real-estate market, it’s usually possible to buy a property on the regular market and then sell it at a higher price as values continue to appreciate.
Finally, list the property that you’ve purchased (and possibly renovated) for sale either through a real-estate broker, through online listings or yourself. Have a clear minimum price that you’re willing to settle for, but list the property for a higher price than you are likely to receive. This will improve your negotiating position when it comes time to sell the property.
Contact Amsterdam Holdings today to discuss identifying, renovating and marketing a home you’re considering flipping.