Tuesday, November 25, 2008

Compound Money by Flipping Houses

Have you ever dreamed of making money in real estate? Well, it's time to start turning those dreams into a reality. Even the inexperienced person can make money "flipping" houses if they are willing to learn the tools of the trade and invest some start up cash. Flipping Houses can be profitable no matter what the housing market is like, as long as the person knows what he or she is doing.

Start by purchasing an inexpensive fixer-upper. Sometimes repossessed HUD homes or houses purchased in government sales are a good bet. You can even get some of these homes for no money down. Then, you fix it up and resell it yourself. It is important to not cut corners when you repair or fix up a house, as it has to meet certain government standards. You also want to garner a good reputation in the community, so as you grow your house-flipping business, more people will want to buy your properties.

This is a great way to compound your money. Let's say that you have $100,000 to start with. You purchase a dilapidated house for $60,000 and spend the rest of your money fixing it up. Once all is said and done, the market value of the house goes up to twice it's original worth. You can sell it, make $20,000 and pocket the money. Then, you're still left with your original investment cash and you can flip another house!

If you are smart, motivated, and willing to take chances, flipping houses is a tried and true way to compound money in the real estate market.

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Article Source: http://EzineArticles.com/?expert=Perry_Webbing

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