No, this is not a one-line advertisement which effectively puts me on the market as a potential mate. I’m posing the question in the literal sense, i.e. begging to discuss with you how you should probably go about your business if you wanted to get into flipping properties. So without further ado here’s some solid advice from someone who has on many occasions operated at the very heart of the industry you’re considering getting into.
You don’t need to be wealthy
A common fallacy encircling the property-flipping world is that it’s a game which can only be played by the wealthy, which would imply that it’s a game of greed since wealthy people getting into this game would only really be doing so if they wanted to add to their wealth. That’s not the case however. You really don’t need to be super rich to get into property flipping. Anyone with access to credit can do it, otherwise you need to look towards other ways of funding your venture.
Think about this for a second: if a bank is willing to finance a mortgage for you to buy a house you’d call your home, that gives it some kind of valuation. What that willingness to give you credit does is demonstrate just how much credit you could qualify for, except now the aim won’t be to get that credit in the form of a mortgage, but rather to get that credit as an outright cash loan.
A good amount of startup capital is required
No, I’m not contradicting myself in light of the previous piece of advice of property-flipping not being the preserve of the wealthy. What I want to bring your attention to is the fact that while you don’t need to be wealthy to get into the game, you do indeed need capital. You cannot buy a property without capital, which means you have to think of ways to gain access to the requisite capital. For one, who ever said that the required capital has to be in the form of a bank balance belonging to you? Other People’s Money (OPM) is used extensively by established and successful property flippers.
Work with a real estate agent
I’ll go as far as saying that you should even try to make a real estate agent a personal friend of yours if you want to do well in the property-flipping game. They are the ones with the information and they’ll do a whole lot more for you knowing that you’re a regular buyer of their offering.
Learn how to identify property-demand driving markets
So there are many facets to the property flipping game, perhaps the most important of which is that of learning how to identify exactly what drives the property market. You can literally start looking anywhere, but you have to know what to look for, which is a clue as to how demand for certain properties in a certain area is going to spike. For example, a great bet at a property which will flip quickly and easily would be something like the news of a new industry having developed in a certain place.