 |
Many people who flip houses haven’t had to do any significant work on their properties at all. In a rising real estate market, just holding property for a few months is sometimes enough to make a nice profit, especially with historically low interest rates and relatively easy credit. As interest rates rise and real estate prices stagnate, however, it’ll be a lot more challenging for people flipping houses to make money. |
The goal of flipping houses is no different from what investors in stocks or mutual funds are trying to accomplish. In order to make a profit, house flippers buy low and sell high, seeking out real estate at depressed prices with the intention of reselling it at higher prices later on. There are all sorts of methods that house flippers use to try to find good prospects. Some focus on properties on which banks have foreclosed, with the hope that a financial institution will be more interested in a quick sale than in getting top dollar for the property. Others look for particular areas that have been out of favor in the past but have good potential for gentrification and urban renewal, which are often accompanied by rising real estate prices. You can even find some people who look through obituary pages to find grieving families needing to sell the home of a loved one.
search for : flip houses, rising real estate market, house flippers
