Real Estate News

Flipping-Pros and Cons

Flipping is the most basic of real estate strategies. It involves simply buying a property, fixing it up, waiting for a short time, and then re-selling it for a fast profit. This is called "rehabbing." A variation is to "wholesale" the property. In other words, you buy only the contract and then immediately sell it to another investor without getting involved in any rehabbing. At its heart, flipping is a speculative strategy. Investors bet that the market value of a property will rise to the point at which they can make a quick profit before they close on the deal. There's the potential for big profits, but there's also the potential for big losses. Let's look at the pros and cons in turn so you have both sides of the picture. The Upsides The first--and primary--upside is investing a very small amount of money for substantial gains. Here's a rehabbing example to illustrate this point: * Let's assume you put down $12,500 (5%) on a $250,000 house. * Then, you spend $5,000 and 60 days fixing it up and another $3,500 in payments. * So, your cash investment equals $21,000. * If you then sell the house for an $80,000...
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Denver Real Estate - Get it while it's hot!

Ever thought about moving to Denver Colorado? This beautiful city has suffered some of the same real estate woe that the rest of the nation is enduring. Depending on your financial situation, these woes can work both for and against you. Some families in Denver have found themselves unable to afford their home or find financing for a new home. But others are able to purchase great investment properties at rock bottom prices in the Denver real estate market. Many have wondered why the nation is experiencing such a turbulent housing crisis over the last 12 months. Many factors have helped create this situation. Thousands of homeowners in Denver alone have had their homes foreclosed due to unfortunate events in their lives or perhaps due to poor decisions they might have made when securing financing for their new homes. Many people made mistakes by taking out additional mortgages on their homes in expectations that the value of their homes were going to skyrocket. They found themselves in serious situations when the real estate market took a nose dive along with the value of their homes. This left the homeowners upside down in their mortgages with respect to the value ratio...
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