The Scoop in Flipping Real Estate

Business Week announced that the sale of 200 Park Ave. in New York was the biggest deal in 2005 when it came in at $2.7 billion. Last year, throughout the 12 months of 2006, half of the biggest U.S. single-asset real estate deals in history were either announced or closed. That brings the Hasbro game Monopoly into real perspective, doesn’t it? Flipping real estate is the best business to be in to make money.

But, you have to be a savvy business person first. You should seriously consider the 4 business principles before deciding to get into real estate in the first place. Furthermore, you need to review those 4 business principles every time you have the opportunity to make money flipping property. What are the super 4 principles you might ask?

These apply to any industry, not just real estate investing. So ask yourself the following:

1. Does the industry have a huge, expanding market.
2. Consider if there is a unique product or service that people need.
3. Is the time to enter the industry right? Then finally,
4. Consider whether leverage can be used effectively throughout the business for geometric growth.

As far as getting into real estate is concerned, the answer is “yes” to all of these questions. But when it comes to flipping property in your marketplace, you have to answer these questions on your own in order to make money. Here’s how to determine that answer for your investment business

Does the industry have a huge, expanding market?
Of course, flipping real estate to make money will always have a huge, expanding market. Most people love to move. The average home owner only stays in any particular house for about seven years. Whether you want to invest in new properties or remodel old ones, real estate is the business to choose. There will always be sellers and there will always be buyers.

But when you plan on flipping a property, you need to ask yourself this same question on a much smaller scale. Is the particular property going to make you money? It might be a sweet deal…to you! But to someone else, the deal may not seem so perfect. You might have to bargain a little to unload it. And if you have to do that, you might end up bargaining yourself right out of any profits.

Is there a unique product or service that consumers need?
Flipping real estate will always provide a service to consumers. The law of supply and demand plays directly into this point – because on a macro level, the world isn’t making much more land available, but its population is skyrocketing.

On a deal by deal basis though, from a micro-economic perspective, you will have to ask yourself if the property will fulfill someone’s need in your market. Flipping real estate can be tricky if you’re not prepared beforehand, and you can get stuck if you don’t know what you are doing. The buyer has to really want the property and the seller has to be willing to give you a good deal so that you can make some money in the deal. If you are honest with yourself, you should be able to make an informed business decision. If you can’t seem to find any answers, make sure you have the seller and the buyer lined up before you proceed. Then, make adjustments to the deal so that both parties are happy. That way, you profit and you don’t botch an easy deal.

Is the timing to enter the industry right?
Personally, I don’t believe there is ever a bad time to enter into real estate. Keep in mind that most of Buffet’s greatest investments were made acquiring businesses in markets when all of Wall Street was looking the other way. Today’s real estate environment is unlike any other market out there – stick with me for a moment on this. First off, Gas prices are at an all time high. But, they can’t stay that way for long. Take Oranges for example, they’re another fluctuating market. Any other market fluctuates. But, real estate is as solid as it gets in terms of the least fluctuation and affording a much longer time horizon – because if a real estate market drops, unlike stocks, they don’t crash overnight…it takes time. And yet, property moves when times are both good and bad.

For you as an investor, flipping real estate has timing considerations on a much smaller scale. For example, a particular property can keep you from making money if you don’t take everything into account. A home in a certain area might be impossible to move after a new highway is built. Or when there’s a new energy plant parked across the street, this definitely would prevent a home from selling quickly. One year, a house might not be able to move because of the reputation of the street. But, a few individuals leave the neighborhood and all of a sudden the real estate deals start soaring on that street. There is never bad timing for real estate in general. But, there are bad times to move a property.

Can ‘Leverage’ be used effectively throughout the business for Geometric growth?
In the perfect real estate deal, everyone is involved in a win/win situation, working like a well oiled machine, highly specialized in their area of expertise and working with one another to achieve a common purpose. That’s true leverage. Flipping a house involves finding a buyer, making a deal with the seller, possibly doing some home improvement work, working with attorneys and contracts, and possibly an assessor and/or Realtor to give you the real market value of the home. If everyone makes a considerable amount of money on the deal and the buyer is happy with the property, than everyone benefited the same. That’s true leverage.

Real estate provides for true leverage situations. But, flipping real estate can be risky. If you want to make money in real estate, you are going to have to learn how to make everyone happy. Everyone who has their hand in on every deal you are involved with should expect their time to be profitable. If you let anyone walk away from a real estate deal thinking that they didn’t make out at all, you have lost a partner on your team.

Once you take into consideration the 4 principles of business, you will always be able to make money flipping real estate. When the industry has a huge, expanding market, you will always have business. If you can always provide a unique service consumers need, you will always turn a profit. If the timing is right, you will always make good money. And when you can make everyone happy, you will always have a successful team.

Start applying these principles today and begin flipping real estate for FREE by starting your 7 Day Trial at INSTANTRealEstateSolutions.com!

Brad Wozny
Founder, www.INSTANTRealEstateSolutions.com™
Creator, 7 Figure Profits™

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