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Author:
Jeanette Joy Fisher

Many real estate investors make $5,000 to $10,000 or more by flipping houses. These investors buy a home from a distressed seller and resell it quickly for a profit. Just because a seller has serious problems like a pending foreclosure or divorce doesn't mean the house is a fixer. Many distressed sellers offer prime houses in perfect condition discounted for a quick sale.

Distressed sellers jump at the chance to get out from under their overwhelming problems with an offer to close in ten days. To purchase a home quickly, you need to be prepared to offer cash or a have secure loan in place with a reliable mortgage lender.

Other real estate investors prefer to buy fixers from distressed sellers. Distressed fixers present the best investment to make the highest return on your money. For instance, if you put 5% down on a $200,000 home, spend $5,000 fixing the house up, and another $3,000 in payments, your cash investment totals $18,000. If you sell the home for a $70,000 profit like many real estate fixers, you can see that your return on your investment of $18,000 for two months exceeds most other types of investments.

This investment plan assumes that you have the knowledge and skills, time to work on your fixer, and that you sell the house as soon as its finished to a qualified buyer. Home improvement centers help you with how-to classes, brochures, and advice. You need to give up your free time--TV, parties, leisure activities and work on your fixer. You could hire workers, but contractors and laborers work slowly and eat up your profits.

The last part of the equation, selling your house quickly to a qualified buyer means you need to do your homework. Many investors seek free help from a loan officer to price the house right and to qualify their buyers. These investors earn the sales commission by selling their houses by owner.

The most important issue, how you fix up your house, ensures that you quickly attract a buyer willing to pay top dollar for your transformed property. Investors using Design Psychology strategies for fixing houses sell their homes, for more than the asking price, three hours after putting the yard sign out.

Whether you want to make money investing in real estate by flipping or fixing houses, you need to understand your market. To get started in your real estate business, go house shopping. You'll soon learn how to pick up a flip or a fixer and be on your way to making a high return on your investment capital.

Copyright (C) 2005 Jeanette J. Fisher. All rights reserved.

About The Author:
Jeanette Fisher, author of Sell Your Home for Top Dollar--FAST! Design Psychology for Redesign and Home Staging, teaches Design Psychology. She also wrote Doghouse to Dollhouse for Dollars and other books. http://www.doghousetodollhousefordollars.com For a free report, "Design Psychology for Selling Houses," go to http://sellfast.info

Copyright Jeanette Joy Fisher - http://sellfast.info

| Article Keywords: Real Estate Investments

A Quick Note From The Publisher... If you like the article above, you may be interested in the following article which is also related to Real Estate Investments... Flipping Houses: Deal Killers That Can Kill Your Profit In my profession I get to see a lot of homes that were bought for investment purposes. Many of these homes will bring a profit for the Owner. Some on the other hand, will be a huge liability for their Owners because the Owner did not do his/her research. Many flippers only think about the cosmetics of a home when purchasing it. Failure to have a thorough inspection of the structure, electrical, mechanical and plumbing can lead to repairs equalling what they paid to rehab the home. I had a buyer purchasing one of these homes from one of the large corporations that purchase "anyone's home for any reason". They'd done a pretty good job of fixing it up cosmetically, however there were serious issues concerning the framing and electrical. I found undersized braces in the attic as well as cracked and broken rafters. The electrical system was outdated and looked like an amateur had wired the home, including the breaker box. Long story short, my Client walked away and the Coroporation...