You might have heard about how lucrative and satisfying flipping is on several occasions and how people like Scott Yancey, his wife Amie Yancey and their goliath company have made a great deal of fame and fortunes through their televised ‘flipping Vegas’ show, which has since been successfully replicated by other shows in other parts of the United States. For those of you who have no idea what flipping is, this write-up is for you!
Flipping! What does this mean in real estate?
You know the ”buy-hold and later sell at profit” principle which has been in the real estate market for all these years? Flipping is the American term used in referring to a more refined and relatively faster approach of applying the above principle. Flipping involves buying particular real estate portfolios which are a little worn out or out of shape in appearance decor, fixing them fast and putting them back on the market within a very short time.
With flipping, the main principle is to identify structures which are structurally sound but are devalued based on how they look. The appearance and finish of any real estate; dwellings especially are usually patronized based on how they look. Flipping capitalizes on this key factor as it involves identifying a property which may be old and appear out of fashion or a property whose existing used has caused its value to take a hit.
Such structures are acquired mainly through listing on specific websites that allow you to post the home you intend to sell for free to receive public exposure.
When such a structure is acquired cheap, a thorough assessment is made of the key features such as plumbing, structural soundness, roofing and air conditioning. The elements in good conditions are kept while all the other dysfunctional parts are replaced with newer and much better substitutes. After these components are taken care of, the attention is shifted to improving the property aesthetically.
Attention is focused on the interior decor and outside outlook, grounds work and backyard landscaping. Kitchens and washrooms are keen for more family oriented products. Flooring, kitchen countertops, cabinets, tiles, walking closets, interior designs and carpet choices among many other finishes both for interior and exterior are adopted based on recommendations of skilled designers employed by the flipper. These installations and modifications are however always subjected to a budget and a timeline.
The finished work is a piece of beautiful real estate product whose value sometimes is twice to triple the value of the older product purchased from the listing. Now the estate agents list this finished product or holds an open house for viewing.
There are however some key things to note for anyone who wants to venture into the quick money making world of flipping.
• Commit to the flip. The first step in any real estate adventure is to commit. So many people want to get into house flipping and get really excited, but they don’t actually commit to going the distance. House flipping is not a hobby – it’s a business that can affect your financial future. Do not enter into it lightly
• Educate yourself on flipping houses. It’s necessary to do before jumping into a house flip. I am suggesting you take you study or seek the help of professionals who know about flipping and remodeling structures.
• Market research. Next, you are going to want to take a look at the market and decide where the best place to flip will be. Every market is different, so you need to have a good handle on the market you plan to get into.
So I want to end this write up with a series of questions, why has an emerging real estate sector of Ghana not ventured into flipping? Or is the general real estate climate of Ghana an obstacle to flipping as real estate avenue? Or just maybe the property acquisition process in Ghana makes venturing into flipping portfolio a wild goose chase.
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