Concerns over rising interest rates and the real estate
market change from a sellers market to a buyers market scare beginning real
estate investors. A sellers market exists when sellers have the upper hand with
little competition from other houses for sale. When more houses are for sale
than buyers making offers, a buyers market means that prices could drop.
Investors who make money flipping houses dont need to depend on
appreciation because they get in and out of the property quickly. These
investors buy houses at a deep discount from sellers under stress to sell and
then resell the house to a buyer who wants to live in the house whos willing to
pay full value. Rising interest rates dont make too much difference because the
investor dont keep the mortgage.
Wealthy real estate investors have been
making money flipping houses in both sellers and buyers markets. Just like any
type of business, some investors misjudge an investment and lose money, even
during the best market conditions. The difference between the winners and
losers, besides experience, is knowledge. Here are three areas you need to know
to ensure your success as a real estate investor.
First, you need to
know your local economy.
You must know the economic outlook in your
area. Follow employment trends and population statistics. Are more people moving
in than moving out of town? Because people always need housing, invest in an
area with a good rental market. If you find too many vacancies in a
neighborhood, that means you should discount any offer or look elsewhere.
Second, you need to know your market.
Knowledge of the
market helps you know a bargain house when you spot one. Look at many houses for
sale in your area. Keep track of sales and how long the houses take to sell. Ask
selling real estate agents about the terms of these sales because this helps you
understand how sellers market their property. (Some of this information is
public record). For instance, if a seller paid closing costs for the buyer, did
the price rise from the listed price accordingly? Or, did the seller come down
on the price and also pay the buyers costs?
Examine the sales that sell
quickly. What home features and financing options prompted the fast
sale?
Third, you need to know about houses.
What makes one
property more attractive to home buyers? You wouldnt want to buy a home with a
terrible defect like a horrible floor plan, a noisy freeway in the back yard, or
structural flaws. The best way to learn about houses is to preview many houses
for sale.
When you learn about your local real estate market, local
economy, and property conditions, you empower yourself to make wise investing
decisions.
Aristotle Onassis said, "The secret of business is to know
something nobody else knows." Dig deep in your local market and find the bargain
house to flip.
Free Real Estate
Investing Information
Copyright © 2006 Jeanette J. Fisher
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