One of the best ways to get a return on an investment is real estate. Some investors have found that in a market that is full of inventory there are deals to be made. Buying a property that is run down, doing repairs on it and reselling it is know as flipping the property or Flipping Houses 101 as we refer to it in this article. It can be a difficult business, but with some practice it could be lucrative.

Finding the right house at the right price is easy when there is a lot of property on the market for sale, but when there isn’t one needs to get creative. Purchasing property when interest rates are low is a smart idea as well for those who need to finance their purchases.

The standard way of looking for properties used to be the MLS, or the Multiple Listing Service, but a competitive market requires more ingenuity. People are attending real estate auctions to find houses to flip as well as short sales. There is no guarantee that a short sale will close and it can tie up the investor for months with nothing gained in the end.

It is best to do a little homework in the neighborhood to get an idea of property values before purchasing a house to flip so that one can get an idea of the profit that might be made. Partnering with a good Realtor could offer sound advice on market values or hiring an appraiser could be worth the couple of hundred dollars they charge to get an assessment on a property. Be ready to deal with lots of paperwork from permits to insurance coverage.

Having the right team to do the job is critical to keep costs down. A project manager is a great idea so that they can manage the entire project, stay on site to watch the sub-contractors, and keep things organized and moving along. It is also necessary to set a time line as the mortgage could be due if it takes longer than a month and it has been financed.

A 15 percent profit is considered the least amount of profit that a flip should produce. Make sure to buy in an area that is desirable to buyers, location is very important. Remember to make the outside as appealing as the inside, curb appeal is important as it is the first thing people see and the home should be inviting.

Remember to remain neutral when selecting paint and carpet colors, take the emotion out of the interior design and think of what will appeal to the most people that will be looking at the house. Make sure the bathrooms and the kitchen are done as well as the budget will allow, all the appliances need to match, all the details should be perfect. Start with an easy flip and then tackle harder projects, keep in mind what you have learned in Flipping Houses 101 for the most profit.

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