By Ralph RobertsRISMEDIA, Nov. 14, 2007-Not everyone is cut out to invest in foreclosures. Some people would rather watch TV, invest in stocks and bonds, spend time with family members, or hang out with their friends. Others have a low risk tolerance and can’t convince themselves to borrow money.
Do you have what it takes to successfully buy, fix, and sell foreclosure properties for a profit? The following list describes the bare essentials:
Sticktoitism. That’s a word I use to describe a combination of the determination and hard work required to overcome adversity. When you’re flipping houses, you have plenty of adversity.
Time: If you can scrape together enough spare time to go house hunting, supervise repairs and renovations, and consult with a real estate agent, you have all the time you need. Many of the most successful investors are weekend warriors, devoting their evenings and weekends to the pursuit of profitable flipping.
Money: You don’t need to be rich to buy and sell foreclosure properties, but you do need to be able to get a loan. You can finance your investments in several ways-by using your own cash and the equity in your home, borrowing from friends and family members, or getting a loan from a private lender. Talk to a mortgage broker in your area.
Guts and gusto: Guts and gusto combine to create the perfect personality for a real estate investor. You need guts to purchase a house with tens to hundreds of thousands of someone else’s dollars in the belief that you can sell it for substantially more in a few weeks or months. A certain amount of gusto is also required to generate the energy and perseverance required to turn trash into treasure.
Family: When a spouse and children are involved, everyone has to sacrifice family time and other indulgences to contribute their fair share to the venture. Families who work well together can make an investment property a family project that draws them closer together. If family members are already a little testy, however, the stress and sacrifice can drive them apart.
Tools: You don’t need a truckload of power tools to flip houses, unless you plan on doing most of the repairs and renovations yourself. A pen, a pad of paper, a calculator, reliable transportation, and a cell phone are the only tools you really need.
Tip: Don’t get hung up on what you don’t have, just be honest about it. Do what you’re good at and hire out the rest… or get a friend to help.
For more information, visit www.GetFlipping.com.
Ralph R. Roberts, official spokesperson for Guthy-Renker Home and author of Flipping Houses For Dummies and Foreclosure Investing For Dummies (John Wiley & Sons), can be contacted at 586.751.0000, or by e-mail at RalphRoberts@RalphRoberts.com.