Finding and fixing up houses and properties for resale is a popular investment strategy for many people.
On the surface, it looks like a pretty straightforward process.
Buy a run-down building, add some landscaping and a coat of paint, sell at a profit.
Hey, if Joe Smith down the street can do it, so can you, right? The truth is, not everyone is cut out for flipping houses.
To be most successful in this type of real estate investing, the investor should have certain personal traits.
Here are a few of the most important ones.
Fast learner For most people, flipping houses comes with a steep learning curve.
You'll have to learn how to judge the value of a property.
You need to be able to estimate the cost of fixing up the property.
You must know something about home repairs, decorating, and landscaping.
Now it's true that an investor doesn't have to be an expert in buying and selling houses, home renovations, and interior design.
But he or she must know at least a little about each part of the process.
Good manager In addition to being a fast learner, you'll need some management skills.
Obviously you can't know everything or do everything yourself.
You'll need the services of many different professionals such as a real estate agent, a mortgage broker, an accountant, and a contractor, to name just a few.
As an investor, you control the whole process, which is a great position to be in.
But this means you'll be required to organize activities, delegate jobs and manage other people.
Outgoing personality This leads to another essential trait.
You'll be interacting frequently with the various people involved in the flip project.
You must be willing to ask numerous questions and seek out advice.
Occasionally you will need to assert yourself to get things done right and done on time.
That's why you should be at least somewhat outgoing in personality.
Flipping houses is not a good investment strategy for the shy introvert.
Creative Creativity allows you to look at an ugly old house with tiny rooms and ancient plumbing, for example, and visualize a modern, spacious home that's perfect for an upwardly mobile young couple.
With a powerful imagination, you'll uncover potential flip houses that other buyers disregard.
Using a good dose of creativity, you can turn these properties into very attractive, and profitable, dwellings.
Dedicated A successful real estate investor must remain focused on the goal - financial security.
Even if flipping houses is something you do only in your spare time, take it seriously.
Treat flipping houses like a business.
Devote enough of your attention and smarts to make it work.
You'll face new responsibilities and encounter new stresses, but don't let that kill your motivation.
Instead, dedicate yourself to making each house you buy a worthwhile real estate investment.