Condo Flipping Still Viable Way to Make MoneyPosted by Yoofi Gerard Hagan on Monday, November 12th, 2012 at 6:35pm.
Some investors are opting out of the condo flipping market, preferring to hold onto their properties longer in hopes of getting a better return. But, even in the soft market of today there are ways to still make money with a quicker sale. The trick is to know your market and take time on the window dressing and staging when it comes to presenting your units for sale. Here are five hints to help you increase your money making odds in the condo flipping market.
Go For the Unique Properties
The newer condos with their boxy appearance just don’t do as well as older properties with a bit of character. Furnishing that charismatic property to take advantage of the vintage architectural appeal increases the eye-candy. Just consider listing your unit at lower than the market value for a quick sale. You’ll have lots of competition at the moment.
Location, Location, Location
Do some homework and find out which locations sell the best. Buy a property in that location and you’ll have a better chance of not only a faster sale, but at an above market price. Worst case scenario, such as in areas like Toronto, is that you will break even.
Keep to Your Budget
Set a budget for renovations and stick to it. A good target figure would be $3,000. Use quality materials and buy items that you like. When you sell the unit you can throw in the furnishings for an extra fee or keep them to use again. High-end items, like under-mounted sinks, are a plus, but just don’t blow your budget too wide open unless you are sure of a great return.
Use Other People’s Money
If you can’t come up with the cash to seal a deal, don’t give up. Try and find an investment partner to ease the financial bite. Just make sure your agreement is solid and in writing before you proceed. Trust is everything.
Go For It!
Study the market, the locations, the potential for financial gain and then just dive right in. As long as you’ve covered all your bases, financial and otherwise, there is no need for procrastination. You never know until you try, as they say.
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