More and more people are getting back into "flipping” – buying properties at a deep discount, fixing them up and reselling within a few months to traditional buyers.
Lex Levinrad, 46, a South African native who says he’s bought and sold more than 500 homes, conducts monthly seminars to show aspiring investors how to do the math and where to find the deals.
He also counsels them to be careful, to avoid the mistakes that led to the housing crash. He said investors often pay too much for homes and underestimate the cost of repairs.
“They become emotionally attached to the house, get greedy and stubborn and won’t sell unless they make a certain profit,” he said. “That’s how they get stuck.”
Here are three golden rules of real estate investing:
- Don’t buy with the expectation that the home will shoot up in value
- Do your own due diligence. Investors should know the true value of a house without relying solely on outside sources
- Know your exit strategy. If an investor is planning to buy, renovate and resell, stick to the plan
Read more at Florida Realtors
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