Getting the Right Knowledge

When you see all the TV shows that glamorize flipping houses and the mega returns one might be tempted to think investing in real estate is easy. It looks like you just buy a house and do some repairs– but there’s so much more to it. Anyone looking to break into the flipping world needs to understand that you must possess certain knowledge to succeed. As with anything, if you truly know what you’re doing, then you’re going to have a much better experience. We can’t control what the ebbs and flows of the market, but you can control what you learn in order to make the right moves.

Value

Picking good, well-known areas is one of the key things to understand.  This is vital since it increases the resale value of the property. Also, look for low-maintenance properties. Look for investment properties that will increase in market value  over time. Purchasing a home near a body of water, for example, is generally a good idea. Also consider the forced value that you can put into the home so that it will become a a long-term investment.

However don’t assume that any property value will always rise. While in most flipping markets this assumption is true, just don’t assume it. The goal is to generate profit from the properties that you purchase.

Location

You want to become familiar with a neighborhood before investing in properties there. Have your real estate agent produce comps on homes that have sold in the area. Do your own research and investigate the schools, crime rates, taxes etc. When buying investment properties location plays a big part. It is crucial to know the local zoning laws and anything else that is involved with the property. Another good source for info are the neighbors. Most will be more than happy to tell you the gossip of the neighborhood, why the past owners sold and what they love about the area. 

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Erik Hitzelberger has been Real Estate Investor since 2007. While learning the ropes in the market down-cycle, he now teaches others how to use his systems and leverage other people’s expertise to achieve their own goals.

Erik Hitzelberger – who has written 194 posts on Part Time REI.

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