Why House Flipping Might be Better
For some real estate investors flipping houses might have been the first investing niche that they started in . Let ' s list the major reasons why house flipping is a good investing strategy :
• More potential to generate income while you hold it – owner financing or renting ;
• Everyone needs a house since shelter is a basic necessity of life . Not everyone needs vacant land ;
• Potential to profit big doing just one good deal ;
• Potential for higher monthly residual income per property ;
• A lot more home owners in desperate situations than there are landowners .
Compared to land flipping , house flipping might seem better , but the acquisition and maintenance cost are much higher for house flipping . Another thing to note is that land flipping profits on average , are lower than house flipping , and you must do more deals to profit higher dollars .
Research the Region
Look for these market positives when investing in both land and housing deals :
• Unemployment rate in the area of purchase is low compared to the national unemployment rate ;
• Be sure to keep your ears open for news of major business expansions ;
• General area & its population is growing and expanding . If it is , best if the area is expanding in the direction of the property you are interested in buying ;
• Talk to the city and county planning and zoning agencies where the property is located ; they will be able to give you valuable information about area growth and building projections .
6 Ways to Minimize Investing Risks
Here is a list on how to lower your risks for investing in houses or land before closing on any deal :
1 . Run necessary tests and inspections depending on specific area and property .
2 . Check with county records to verify no complaints or notices for required repairs are filed .
3 . Make sure you work with contract escape clauses to assure you can walk away for any reason .
4 . Avoid giving check or cash money down until you are positive you are going to close .
5 . Make sure that your purchase contract is worded in such a way that it allows you to only transfer cash at the time of closing .
6 . Make sure the title is not “ cloudy ” and property is marketable . Remember IRS liens have to be paid ! If you buy a property with those liens , that bill becomes yours . Do your due diligence in running a title report before closing .
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