Real estate investment is indeed a long term game. But it is not always necessary to wait for several years to make some good money out of your investments in property market.
If you would go through the journeys of legendary real estate investors like Donald Trump, Wang Jianlin or Michael Otto, you would wonder how they minted millions of dollars so quickly and so consistently.
Their net worth runs into billions of dollars. Certainly, it is a mix of several things. Long term investments, flourishing businesses, it all contributed to their success. Somewhere down the road, they were able to make some quick bucks in the early years of careers and that made them successful investment wizards.
Today we are going to speak about a strategy that may help you as well in becoming rich in a short period of time – and the strategy we are going to talk about is ‘flipping’.
Real estate investing is a capital intensive activity. It requires a huge chunk of money to buy homes and most people buy residential properties by taking mortgage loans. When the economic and business environment takes a downturn, there are several people who have to bear the brunt. They look for ways to avoid paying huge loan installments and consider selling off their houses.
For a real estate investor, buying a distressed property can be a very profitable move. You can secure a good property at throwaway prices if you make a quick offer and get the deal closed. Once you have such property in hand, you can spruce it up and make it open for sale.
There are all the chances that you generate 5-25 percent returns on your investment within a very short period of time. That is how you flip properties and make quick money.
The real estate market is always full of opportunities. It is not always about buying a distressed property. Many people want to sell their properties due to many other reasons. For instance, a property owner may be relocating to another city or country.
In case of overseas relocations, the property owners are generally desperate to sell their immovable assets as they rightly believe how difficult it may become to manage a property sitting in a foreign country. That’s where you can make a killing.
Keep an eye on such movements in the market and take fast decision if you find the property in order. The owners may not shy away from offering you the asset at a lesser price. They don’t want to waste time and wait till the last moment to make a deal happen. If they get the money in hand, they would always sell it off quickly. After all, time is money, for both the buyer and seller alike.
Such properties can be sold out better prices within a few months. All you need is to keep them in great, ready-to-move-in condition. You can organize all the necessary repairs and renovation, and it is for sure that all your investment in these tasks brings you much better returns on your overall investment in the property.