It really is not that easy, so pay attention! : )
House flipping is when I buy a house to sell it again after I renovate it. Hopefully with a profit. So you make money by increasing the value of the house – selling it for more than you paid for it. If done right this can be very lucrative.
It is also easy to lose a lot of money though! That is why I always do extensive research and I make sure I have enough savings to take a hit if the market moves against me.
I also make a tight schedule and budget. And I work hard to stay within these boundaries (although I must admit, I often go slightly over budget).
But I think it is important to do careful planning and thorough calculations.
The real estate market
It is also important to know the local real estate market.
As they say: location location location. You can make the ugliest home a palace, but if noone wants to live there, you will never sell it for a good price. And you need to sell quick, because every month you don’t sell it costs you dearly.
Next time I will write more on the real estate market. Hope you liked it so far.