For a very long time, the “Fix and Flip” business was so hot, it was all anyone would speak about. However, the market became so oversaturated that people have forgotten the importance of having a strong foundational basis for your real estate investments. Rather than focusing on tricks and gimmicks, it is a good time to focus on the basics of what you need to Fix and Flip real estate:
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Sufficient credit
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Unless you are already rich enough to purchase a property with cash, you will need to obtain a mortgage to purchase an investment property. To do that, you will need good enough credit to get approved for that mortgage, so make sure your credit is in good shape before you start picking out properties.
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A suitable location
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Picking the right property to invest in is key to any type of real estate investment. This includes not only the structure of the property itself, but also any zoning laws or other restrictions that may impede your ability to develop or renovate the property, as well as its proximity to mass transit, shopping areas, and other appealing locations.
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Market research
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If you are going to invest in real estate, you should get accustomed to researching any market you intend to participate in. Knowing things like how much an average property costs, whether it is a growing community or not, and whether there is any planned development in the area can help to guide your investment decisions.
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Reasonable expectations of costs
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Simply buying an investment property is only the first step. You also need to plan for additional costs, such as the cost of renovations, property taxes, and any maintenance you may need to perform until the property sells.
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Legal counsel
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You should never conduct any real estate transaction without at least having a lawyer look over your contract. They can help you resolve any potential legal problems to prevent your investment from becoming a massive headache.
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Homeowners’ insurance
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Sadly, investment properties are not immune from any of the hazards that can endanger any other home. That is why you should purchase homeowners’ insurance to protect against damage from robberies, storms, or anything else that may endanger your investment.
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Trustworthy contractors
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If you are planning to invest in real estate, making sure you have contractors who are trustworthy enough to perform renovations on your property is essential. If you try to use shady contractors or do everything yourself, you risk potential code violations that can cost you more later on.
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At Stable Holdings, we assist our clients with a variety of services related to buying and selling real estate, including purchasing homes for cash. We have experience handling real estate financing, especially for developers and house flippers. If you are interested in selling your home for cash, please contact us at 516-548-6553, or visit our contact page.
