America is often hailed as a “free” country, but is this freedom genuine if you’re tied down by financial responsibilities?
Many U.S. citizens, knowingly or not, are stuck in the rat race, working 40 or more hours a week just to cover their expenses and put food on the table. This isn’t how life is meant to be.
The American dream isn’t all about work with no time for leisure, yet people feel trapped in this cycle. What they may not realize is there’s a simple way out…
You can drastically reduce your workweek without cutting your income by adding an extra stream of income.
And what better way to earn extra cash than through real estate?
House-flipping is one of the most lucrative forms of “easy” income, which is why I’ve compiled some tips on flipping your real estate investments.
As I’ve said, house-flipping can be a highly appealing investment. Still feeling doubtful?
If so, take a look at Grant Hill’s success story in real estate. In 2009, Hill purchased two apartments in New York City for $280,000.
Do you know how much he sold them for?
In 2014, Hill sold those same apartments for $790,000! That’s over half a million dollars ($510,000, to be exact) of profit in less than five years!
So, you’re ready to try your hand at real estate, but maybe apartments aren’t quite your thing. Flipping homes for profit applies to various types of real estate, but apartments arguably offer the easiest path.
Why is that?
Simply put, apartments have smaller square footage and lack landscaping, which reduces your workload.
It’s also important to understand that location is key!
Choose the right neighborhood and focus on areas you know well to connect with the right buyers. High-demand areas, like New York, are prime for investment because of their constant demand.
But you’re not limited to New York. There are numerous cities to explore for maximizing your real estate investment, but a good rule of thumb is to focus on places where people want to live. Cities like Dallas, Los Angeles, and Miami are just a few strong options.
Once you’ve found a house or apartment that fits your criteria and made the purchase, it’s time to move to phase two.
Finances are the cornerstone of buying and selling real estate.
Experts suggest aiming for at least a 15 to 20% return on your investment. Of course, there’s always a chance of hitting it big and securing a 182% return, like Grant Hill did with his apartments.
That kind of return is ideal, but your goal should be to at least land in the 15% to 20% range.
At the same time, don’t rush to sell just to hit those numbers. The best way to profit from real estate is to remain patient.
Even after renovations are complete, buyers won’t necessarily come rushing to you. Don’t let TV flippers convince you otherwise.
If it doesn’t seem like you’re getting the return you want, wait for the area to gain popularity or sell when the market is favorable.
There’s no harm in waiting. In the meantime, renting out the property can provide passive income and help with mortgage payments.
Another tip to keep in mind is to save on the smaller things during renovation. Don’t splurge on a $5,000 oven when you can get a perfectly good one for much less.
If the daily grind of commuting and working 8-hour days isn’t for you, flipping real estate could serve as a lucrative escape from that routine.
If you play your cards right, you could earn $100,000 or more each year, just like Hill. Success in real estate comes down to location, patience, and finances.
