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Flipping Foreclosures – The Best Gameplan

When setting out in the business of flipping foreclosures, real estate investors can pursue different strategies to maximize profits.

But how can you determine upfront which one will work best?

Among the different strategies are:

- Buying houses that need a lot of fix up work for bottom dollar, add value by fixing and resell
- Buying houses in good condition that need little work and sell either as is or after a few improvements have been made
- Buying high-end homes that have a high dollar amount of profit potential
- Buying low-end homes that have limited risk exposure

And many more…

All these strategies have a different mix of appeal, risk, competition, need for capital. I read recently on Investor’s Business Daily that the strategy to sell high is a great one, and to be able to do that the house should be nice, and in good condition when you buy it.

A quote from that article states that “Nice foreclosed properties are harder to find. The number available to foreclosed-property investors has slid 25% to 50% in the past six to eight weeks, he estimates. And competition among flippers has heated as large companies have gotten into the market to become landlords.”

This is the case in Riverside County, one of the most depressed areas in the country, second only to some counties in Florida.

Profits are waiting in each of these niches. Don’t hold yourself back thinking this or that strategy is the only one or even the best one. Choose the ne that’s most appealing to you, do some research and start moving.

What is your favorite foreclosure flipping strategy? Leave your comment below.

 


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Category: business building, How To Flip a House, Investment, trustee sale

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