3 Signs It's Time to Flip Real Estate

It is not always profitable to attempt to flip real estate. Flipping real estate means buying a property at a low price, making repairs, and selling the property for a large profit. While gains can be high, choosing the right time to engage in the practice is key.

#1 Purchase Prices are Low

The first element you need is a low purchase price on a property. It is rare to get enough gains through your improvements if you cannot get into a property at a deal price. Many individuals who flip property look for foreclosure and short sale listings. Watching for homes that have been on the market for a long time can also reduce costs.

#2 Supply Costs are Low

Repairing homes costs money. It is important to consider the cost of supplies, such as fixtures, lumber, and cement prior to actually starting a project. Supply costs can go up at times when gas prices are high or a lot of building occurs in your area.  

#3 Loans are Easy

Ultimately, lenders are an essential part of the real estate flip process. You will need loans to buy and repair a home. A new buyer will need a loan to purchase the home from you. If loans are hard to come by, it can be a challenge to make money in the real estate market.

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