Flipping properties is one of the most enjoyable types of property investments for many 'hands on' investors. This allows the investor to roll up his or her sleeves and take an active role in creating the masterpiece that will eventually bring in revenue.
However, this is also one of the riskier investments, particularly when trying to turn a profit in a buyer's market.
The risks are simple but often overlooked and they can have a significant impact on the overall success or failure of the project. First of all, the biggest risk is in paying too much for the property.
Other risks include underestimating the costs of repairs, over estimating the ability of the investor to do the work him or herself, taking too much time, experiencing a down turn in the housing market, making the wrong judgment call for the neighborhood, becoming overly ambitious, and getting greedy.
Sometimes it is much better to walk away with a lesser profit than to end up loosing money by holding out.
Janus Real Estate Group * Heather Anderson * 972-765-3773
