Flipping Houses in a Bull Market: Time to Switch Strategies?
by Fortune Builders
Flipping houses is about to get a lot tougher. How can you keep the profits rolling in?
Thousands of those who have jumped into real estate investing in the
last couple of years to cash in on foreclosures by flipping houses have
no idea what it is like to work in an up market. Especially a market
where foreclosures, short sales and REOs are scarce. Few investors in
the business today have experienced bidding wars or just how tough
sellers and Realtors can be when things are good. So is it time to
switch up real estate investing strategies?
There are many advantages to flipping houses in a rapidly rebounding
market. Properties sell faster, homes can jump tens o thousands of
dollars in market value in just days, there are far more buyers and
ultimately lenders become a little more lenient. However, this doesn’t
mean that you can afford to speculate on purchasing full priced
properties and hoping they will go up.
We should certainly start to see the number of foreclosure homes on
the market dwindling in many areas of the country by the end of this
year. Those who fail to recognize this, prepare and who aren’t already
getting the jump on competitors by diversifying their acquisition
sources could find deals drying up overnight. For those carrying a lot
of debt this can be ruinous.
Don’t worry, this doesn’t mean that you have to suffer hard times
ahead. However, it does mean a need to build on your real estate
investing education and learn more about the types of distressed homes
which are available in every market. Think properties in probate, homes
of couples going through divorce, business owners in bankruptcy and
workers forced to relocate. Know where to find them, who you need to
network with and begin experimenting now.
go to Fortune Builders
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