The Good, Bad and Ugly of Real Estate Investments Part 2
The next type of property they talk about in this story at http://money.usnews.com by By
Lou Carlozo is flipping properties.
“You might flip for
flipping houses. In this form of investment, the goal is to get in short-term
and sell properties at a markup. And while many investors make money this way,
much depends on the neighborhood you buy and sell in, as well as hidden costs
associated with renovating the property that can decrease its net return. “This
type of real estate investment has more risk than owning rental properties,”
says Rebecca Pavese, financial planner and portfolio manager with Palisades
Hudson Financial Group in Atlanta. “
The flip market can only be done at certain times in the market. Usually you want to be more of a sellers market. This allows you to have more leverage in the sell. The property also needs to be in a desired area were the Days on Market are low. The last major thing to remember is the equity position you have after you’ve finished the project and your ready to put it on the market. The equity is based on the retail price of the home the higher the price the more equity you need in most cases.
” Increase your profit
potential with an investment of time. Property development, management and
administration often require an army of specialists. But if you’re adept at
repairs, accounting or showing a vacancy to prospective renters, you can forego
the fees associated with hired help. “Depending on your availability and your
skills, these could be trade-offs that are worth making for you,” Reiss says.”
To me this is the crucial part of real estate investing. You not only need to have the right people but you need to know that those people will get the job done to your satisfaction.
The part that is not mentioned in this article is the marketing of your property. Whether is is renting or selling a property you need someone that is going to ensure you get your property making money. Few investors understand this part of the equation when you are thinking of all the aspects of real estate. Example: I know a large investor that deemed marketing not to be all that important and didn’t want to put any investment into marketing his properties. He has wasted months of vacant properties just because he forgot the marketing part of the equation.
Good news is Rooftopinvestment.com have that part of the equation and all the other parts. So if you want to get a nice healthy Real Estate portfolio in rentals or flips call Brett 216-703-5740 Coldwell Banker.