By Real estate investment is one of the best ways to put your money to bring you profits. Compared to other investments that an average individual has access to, real estate provides you with a lot of control over the decisions that help define your return on investments (ROI). While most of us believe in holding on to the property we have invested in, flipping properties is a great way to make huge profits from real estate investments. Also known as wholesale real estate investing, house flipping is an investing strategy wherein the investor buys a property not to use, but for resale and gaining profits. This profit is gained from price appreciation in areas with a steep rise in prices or from improvements made to the property, or both.
The first few attempts at house flips would just be a learning process of how business works and a hands-on experience on maintenance investments. There seems to be some risk involved and the learning curve might look steep, but once you build your way through more ambitious projects, you’ll minimize the risks involved by a large extent. How much you profit from a house flip depends on how good your decision making is. In the beginning, it is best to start small with minimum risks involved, such as investing in a 1 BHK in Dahisar East. This allows you to recover from the mistakes easily and save enough on your profits.
Experienced players in the game invest in several flips in a particular year, churning huge profits. If you have been in business for a few years and are looking to up your game, here are a few tips to get the highest return on your investments!
- Adding area to the house: Planning renovations and improvements in the property requires careful consideration and the study of the returns it would get you. If planned meticulously and economically, adding square feet to the liveable space of the house is a guaranteed way of increasing the selling price. When looking for properties, keep an eye on the price per square foot as it will help assess the profit margins if you plan on increasing the area.
- Consider larger houses: While beginners should stick to small properties, those who have been in the real estate business for a considerable amount of time should not let go of larger, high-end homes. In cases that involve a large total value, you get more freedom to work on a greater scale in terms of purchase and resale. You can double your profits on a large property, once you buy it at a low cost and work on the house.
- Leverage your skills: There are several distressed houses that you can work on and gain profits from. Issues such as fire damage, water leakage, crumbling foundation, and electrical rewiring are big enough to scare away any buyer. Make use of the opportunity; implement your skill sets and connections to convert the home into a desirable living space for any buyer.
There is a lot that can be gained from flipping houses. For a lucrative business opportunity, you need the right approach to ensure profits. Be it 2 BHK apartments in Goregaon East or a 4BHK in Malad East, once you’ve invested in a nice property by developers such as the Dynamix Group and converted it into a luxurious space, you are definitely in the league for some huge profits!
