CHAPTER 4 Homes to Invest In
So now that you’ve got the financing in place, how do you know which homes or properties to buy? There are plenty of factors you need to consider to ensure the purchase makes sense. As the saying goes, you make money when you buy , not when you sell . This is why it’s key to buy the right property, which entails being clear on where you’re trying to sell and who your buyers are. Also, keep in mind this saying: “You don’t have to like the house, just the numbers.” Read on for more details on how to make the best choice, particularly when it comes to flipping homes.
WHERE TO START
The first thing you have to do is choose your market. If you’re flipping, consider looking for the location closest to you that has a population of at least 100,000 people. (Bigger market = more opportunity.) This is considered your local market . Another option is remote investing , which could theoretically be anywhere. However, be sure to choose someplace that’s not only familiar to you, but also a place to which you feel emotionally attached. This might surprise you, as most people have been told that emotions should stay out of these kinds of decisions. I don’t disagree when it comes down to the details, like which specific property to buy, what to fix up, etc. However, in this one case, emotions are important. You’ll be spending a significant amount of time there doing some pretty 22
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