Google Plus Facebook LinkedIn Twitter Vimeo RSS
Real Estate

Flipping out is the rage

By ,

Cute headlines aside, “flipping” really is the rage right now all around Central Pennsylvania.

While the buying of neglected properties to upgrade and resell never really went out of style, the bottoming real estate market and glut of foreclosures led to a resurgence of interest in flipping homes.

Flipping a home is a pretty straightforward process at its core: buy low and sell high. The buying low part is usually the catch, and many hundreds of professional real estate investors continuously prowl the landscape and haunt county sheriff’s sales ready to snatch up the well-priced “bargains.” This makes getting started in flipping a bit harder but not impossible, with patience.

Here are my tips on becoming a profitable flipper:

1. Learn your markets. This is a huge piece of your success. Knowing what areas are on the rise and what neighborhoods are attractive to buyers is an important filter to your search for a good flip property. Research the HUD and foreclosure processes so you have an understanding of the investor opportunities and risks in them.

2. Find a strong investment real estate agent. Having a smart agent on your side is very important. That person will advise you on the nuances of negotiating the transactions and be a sounding board for you as you walk a property with fix-up plans in mind. Choose an agent with a track record of working investment property purchases and street smarts in your market areas.

3. Learn the “rehabbing” lingo and cost structure. Google the subject and watch videos on rehabbing, which is the process of fixing/upgrading/certifying a property for successful resale. There’s a whole other lingo to it, and you should be able understand costs to do the majors such as roofing, kitchens, HVAC and landscaping. If you’re hiring contractors, understand what it will cost you versus doing the work yourself.

4. Have initial capital in hand. Research a second mortgage or business loan to get yourself financed for the first deal or two. Once you sell at a profit, you’ll be able to start pouring money back into the successive projects.

5. Don’t be afraid to say “no.” There are going to be many, many opportunities to say “yes” to a property that isn’t quite what you wanted. Plan ahead to set fairly rigid guidelines for your project on what areas and price ranges you’ll entertain for an offer. Remember the old investor adage: “You make your money when you BUY the house”.

There are still lots of great flipping opportunities out there – get organized and go look at some houses!

More from the Real Estate Blog

Jeff Geoghan

Jeff Geoghan

Jeff Geoghan is the marketing manager for Coldwell Banker Residential Brokerage in Central Pennsylvania, based in Camp Hill with 20 offices in 10 counties. Jeff lives in East Petersburg, where he also serves as mayor. He has been active in local government and business and has been used as a resource by local, regional and national publications.

All opinions in Jeff’s blog are his own and do not reflect those of his company or any other entities.

Leave a Comment


Please note: All comments will be reviewed and may take up to 24 hours to appear on the site.

Post Comment
View Comment Policy