I get a lot of questions from clients, friends and family about buying up Boise-area homes to then "flip." I am working with several buyers who are flipping properties very successfully, but it takes a lot of discovery and research. Here is some sound information from reporter Gary M. Singer of the Florida Sun Sentinel that explains things well. Again, the key here is highlighted in bold at the end of it---
"The best way to become a successful investor is by learning the marketplace - maybe as a real estate agent..." Let me be your professional agent and help guide you to your real estate goals.
"Flipping refers to buying a home at a discount with the intention of
quickly selling for a profit. During the housing boom, investors flipped
properties in a matter of days, taking advantage of the huge run-up in
prices. Today's investors are more likely to buy and fix up the homes
before selling a few months later.Flipping is a perfectly legitimate business - as long as you aren't lying to a lender about your intentions or otherwise scamming the system.
Despite what those infomercials and radio spots may lead you to believe, investing in real estate is risky. If it were as easy as the gurus say it is, they would be too busy investing to teach so many seminars.
Be leery of the potential pitfalls. Selling the property may not be as easy as you think. A prospective buyer's lender may have requirements that the investor (you) own the property for a certain period of time or that the increase in the resale price not exceed a certain ratio. For these reasons, most flips involve an end buyer paying cash. And cash buyers usually are experienced, so you could be stuck with the home for a long time if you don't purchase it at the right price. The best way to become a successful investor is by learning the marketplace - maybe as a real estate agent, contractor or appraiser. That will give you experience you need in identifying undervalued properties with profit potential."
Call me,
Rick Bennett
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