Everyone knows that America is a “free” country, but does this freedom really exist if you’re being controlled by your financial obligations?
Whether they realize it or not, the majority of U.S. citizens are loyal participants of the rat-race, sometimes working 40 hours or more just to pay the bills and put food on the table. This is no way to live.
The American dream doesn’t consist of all work and no play; however, people feel confined to this lifestyle. What they don’t understand is there’s an easy escape…
Your workweek can be condensed to a fraction of what it is now without sacrificing your salary just by implementing an additional source of revenue.
And what better way to earn this cash than through real estate!
House-flipping is one of the most profitable forms of easy income, which is why I’ve listed a few tips for flipping your real estate investments.
As I mentioned, house-flipping can be an exceptionally enticing investment. Perhaps you’re skeptical though…
If that’s the case, take Grant Hill’s real estate success for example. Hill bought two apartments in New York City for $280,000 back in 2009.
Can you guess how much he turned around and sold them for?
In 2014, Hill sold these same apartments for $790,000! That’s over half a million dollars ($510,000 to be exact) of profit in less than 5-years!
Okay, so you’re willing to give real estate a shot, but maybe apartments aren’t your cup of tea. Buying homes and flipping them for profit applies to all sorts of real estate, but apartments arguably offer the most simple avenue for it.
The basic answer is that this particular housing style lacks landscaping and has smaller square footage. Each of these factors empty a portion of your workload.
You also need to understand that the location is crucial!
Pick the right neighborhood and stick with areas you’re familiar with in order to reach the right buyers. Congested areas, like New York, are great investment choices because of the demand they carry.
You’re not only limited to the Big Apple though. There are plenty of cities to choose from when trying to make the most out of your real estate investment, but the general rule of thumb is to settle for an area that people are interested in living in. Places like Dallas, LA and Miami are just a few viable options to choose from.
Once you’ve set your sights on a house or apartment of your liking and pulled the trigger, it’s time for phase 2.
The key to buying and selling real estate is finances.
Experts recommend that you earn at least a 15 to 20% return on your investment. Then again, there’s always the chance that you could strike cold and land a 182% return like Grant Hill did with his two apartments in New York.
This is obviously ideal, but the goal is to at least fall in this 15 to 20% range.
At the same time, you shouldn’t try to rush and sell so that you can reach these percentages. The best way to make money in real estate is to be patient.
Even after you finish remodeling, the buyers aren’t necessarily going to come running to you. Don’t let the flippers on TV convince you otherwise.
If it’s not looking like you’re going to get the kind of return you want, then wait for an area to become more popular or sell when the market is hot.
Doing so is not the end of the world. Renting out real estate is a great form of passive income that you can resort to in the meantime to avoid getting swamped with mortgage payments.
Another thing to remember is to conserve on the little things during the renovation process. Don’t put a $5,000 oven in the kitchen, when there’s one that’s just as good for a fraction of the cost.
If the day-to-day grind of commuting to and from the office for an 8-hour workday isn’t for you, then flipping real estate could very well act as a profitable means of escape from this mundane lifestyle.
If you play your cards right, you could end up making $100,000+ a year as Hill did. It all boils down to location, patience and finances.