What Is Real Estate Flipping? and Why You Should Care

What Is Real Estate Flipping? and Why You Should Care

What Is Real Estate Flipping? and Why You Should Care

Buy – renovate – sell

This is the simplest way to explain real estate flipping. Also known as house flipping, this investment strategy involves buying a dilapidated or old and distressed building at a cheap price, holding it while you revamp and selling it for a higher price. Here in Nigeria, it is better known as fix and flip.

House flipping is a great way to get into the real estate landscape, particularly for investor with little money. However, making it a profitable business requires that you follow certain guidelines. For instance, you need to have basic knowledge of property valuation before buying. If you don’t, find someone who does, like a property valuer. And get a good lawyer too.

Here are more tips to help you get started:

Don’t buy any building that isn’t a house or shopping complex – these buildings are easier to sell

  1. Avoid, like a plague, any property with strong sentimental value to its immediate environment – they are harder to sell and could attract lawsuits.
  2. Consider the location of the property before purchase.
  3. Pay attention to factors like accessibility, drainage, security, infrastructure, amenities, and demand for properties in an area before you buy.
  4. Ensure that your choice property has accurate and up-to-date documentation.
  5. Don’t buy on sentiments or emotions.
  6. Look at as many options as possible.
  7. Don’t overspend – before you buy a property, calculate the cost of repair and add it to the purchasing cost. If this cost is higher than the average value of a standard property in that location, run o!

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