Platinum Swing Trade Alerts

The 10-Buck Broker (Long-Term Stock Picks)

Announcement

Collapse
No announcement yet.

Strategies for House Flipping

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Strategies for House Flipping

    The goal of any house flipping project is to make lots of money in a short period of time. Since making money doesn't happen until the end of the project you must first start with the end in mind. You should always have an idea of how much money you want to make on your house flipping project. Typically, this money made is expressed in terms of a percentage, called the return on investment.

    For most house flipping projects, a 10% - 20% return on investment is an average range. Anything above 20% is above average for today's market and anything below 10% in most market conditions is typically not worth the time and effort. This percentage range can also vary depending on the current state of the real estate market. Five years ago, this range was as high as almost 30% - 40%. Last year, a 5% ROI would have been a great yield.

    Now that you a little bit about ROIs, you need to determine how much money you need to spend to make that return. The more money you want to make, the better you should plan your spending. Therefore, it is crucial to determine your project budget for the house flipping process.

    You determine your project budget, based on personal financial information such as your credit rating, loan payback history, cash on hand, etc. These factors will play a significant role in how much you can spend on the house flipping process.

    Let's go over an example to showcase the point of strategic planning in house flipping. Obviously, the real estate market is very unique and the figures are updating daily. There is no way to say exactly how much to budget for because the numbers will be outdated very quickly. Fortunately, these numbers and timelines are provided for example purposes only.

    For our example, we want to earn a 10% ROI. We also know - after reviewing our personal finances - that we have a total budget of $300,000 to spend during the house flipping process. We also want to spend 2 months on this flip. Of that $300,000, the first $250,000 is set aside for the home purchase which will take approximately 2 weeks to find and buy a home; $40,000 is set aside for the construction costs which will take approximately 4 weeks to complete; and $10,000 is set aside for the marketing and sale of the home. If everything goes according to plan, this will take another 2 weeks.

    All payments will be made in cash and in full at the point of sale.

    In summary, we have spent $300,000 over 2 months.

    Sticking to our 10% ROI strategy at the beginning of this flip, that means we would have to sell our flipped house for $330,000 to stay on course. If we can accomplish this, we would have made $30,000 in 2 months! This goal certainly is within reach even for beginning house flippers.

    Imagine if you had two house flipping projects happening at the same time. That's $60,000 in 2 months time!

    House flipping is challenging and not every house flipping project is successful. However, if you plan a realistic budget and schedule you could earn thousands of dollars in the real estate market.


    Article Source: http://EzineArticles.com/6466370
    Platinum Swing Trade Stock Alerts(FREE 14-Day Trial)

    The 10-Buck Broker (Long-Term Stock Picks)


    Best Stock Picking Services

    Sign up for the forum to reply to this post!!!


    Best FOREX Signals Software

    Stock Market Investing For Beginners


    "Step into the arena and hold on to your hat. Don't get discouraged if you don't make 8 trillion dollars in your first month. Trading is not a get rich quick scheme. Realize that trading is a skill and just like any other skill it takes time to learn. Have convictions in your decisions in life and trading. Ignore the comments and "advice" of those that have never traded a day in their life."

    Good KARMA and positive energy abound.


    Terms Of Service

    Disclaimer: This website provides information about the stock market and other investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for informational purposes only. The Author of this website is not a registered investment advisor and does not offer investment advice. You, the reader, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.

    Promoted content: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this website and may receive commissions from purchases you make on subsequent websites. Always exercise due diligence before purchasing any product or service. This website contains advertisements.
    Best stocks to buy now Stock Market
    Best stocks to buy now
    Dow Jones TodayDJIA
Working...
X