Buy Now, Flip Later

Posted by Shawna Ebersole | Categories: Real Estate Investing

Yes, I realize it’s a “Buyer’s Market” right now, but that doesn’t mean it’s necessarily a good time to “Flip” real estate.”Oh, but they’re so cheap.  I can buy it for this, put so much into it and sell it for that.”  Wrong!

You can do the first two of those three, but forget about the turning around and selling it part.  Here’s why:

Because right now, there’s always going to be another home that someone can buy for less.  The people that are buying up houses right now are investors.  They’re looking for the best deals.

They don’t care that your home has this upgrade and that new fangled whatever.  They want cheap.  Remember, money is made in real estate when you Buy . . . not when you Sell.

So be one of those smart investors.  Start buying up properties and holding on to them until the market turns around.  Don’t sell them now.

Hold on to that HUD home you just snagged for $60,000.  Put some paint and carpet in it, rent it for more than your mortgage payment and hold onto it until you can sell it for $90,000 or $100,000 a few years down the road.  That’s how you make money in this market.

Now if you’re someone that just absolutely has to move right now . . . Maybe your family is growing and you need a bigger house or maybe your job has let you down and you can no longer afford the house you’re in and need something less expensive.

Either way, why not think about holding onto your current home and renting it?  Why sell right now if you don’t have to?  You already know it’s worth less now than it was a few years go.  And surely you know that what goes down must come up (or something like that).

Regardless, don’t let this market get you all down in the dumps.  Stop focusing on what your house woud sell for right now.  Start focusing on what you’re able to buy real estate for right now and take advantage of these garage sale prices.

Buy smart now and you’ll be sitting on a gold mine when the market recovers.

This entry was posted on Monday, August 18th, 2008 at 7:26 pm and is filed under Real Estate Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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