How To Find Profitable Houses For Wholesale Real Estate Investing

These tips will help you find good investment properties.

Obviously you can never go wrong when you buy your houses low.

These few points will help you qualify a house as a good investment.

1)    Extent of repairs
Most houses for flipping need repair.

You must determine the extent of repairs needed and estimate how much it will cost.

If repairs are light, you probably have a good deal.

Unexpected or big rehabs can cost too much and leave little to no profits for you.

2)    Budget
Can you stay within your budget?

On occasion, it may well be required to perform an inspection even for a house that needs repairs to find out if you might want to do structural repairs such as plumbing, changing walls and so on.

3)    Time frame
Can you complete repairs within a short time?
Will these changes increase marketability and value of the house?

Speed is necessary when flipping houses so costs remain low.

The goal should be to spend little money, make your profits and go to the next deal.

4)    Hiring contractors Vs doing it yourself
Even though flipping houses involves wholesaling them to other rehab real estate investors, it possibly will be necessary to assess the type of rehab that needs to be done and if you can do it yourself if necessary, or hire a contractor to do it for you while keeping the carrying costs low.

5)    Neighborhood
Avoid war zones or run-down neighborhoods.

You also need to avoid high end areas when flipping houses.

Staying within the medium price range will not only give you more deals, but your properties will be easier to sell.

Does the house look similar with other houses in the same neighborhood?

Is it too big or too small in comparison to similar houses?

These things will make your house harder to sell and eat into your profits.

Stay within the median in that neighborhood to be most safe.

6)    Comparable sales
Do similar houses sell at a price that leave a profit for you?

It might seem like you have bought it low enough, but comparable sales in the area might prove you wrong.

It is safer to have conservative estimate of the fair market value when buying houses than make end up making a loss because houses in the same market have not been selling within your price range.

7)    Demand for the property
Even in a low housing market, some neighborhoods are more marketable than others.

Is it near important services like schools, hospitable, shopping, recreational facilities and others that make it more appealing to buyers?

This will make you sell your house fast.

Whether you plan to flip the house to another investor or do the repairs yourself, these are important factors to consider that will make your house sell faster and move on to the next deal.

About the Author

Simon Macharia invests in real estate in Dallas Texas and runs his business from a real estate investing website that also automates his business. Click here to find out how to can automate your business and make more while spending less time and money.

Author (simon87). Submitted on Sun, 11 Jul 2010 Time: 2:28 PM

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