New Guidelines for Miami Home Flippers

by Isaac Benmergui, Esq on August 19, 2013

inverted house_edited-1Investors looking to capitalize on Miami homes’ values with quick rehab to properties before flipping them need to understand the new Miami housing market. Although prices are still low, they are rising quickly and quick flips may be a thing of the past.

One entrepreneur who now counsels investors on how best to buy and sell in the new Miami market says in the past flippers could see a quick profit from their investment in distressed homes, but now that may not be the case. Many investors get too greedy and won’t take a good offer until they make a certain profit margin, which can result in the investor getting stuck with the property.

Investors should keep in mind the following before buying any distressed property hoping to make some quick cash:

  • Don’t expect the home’s value to increase overnight just because you’ve made improvements. Many flippers got stuck with properties during the housing bust with this mindset. Compare it to gambling in Las Vegas.
  • Buy at a steep enough discount that provides some instant equity in the home. This way if you resell it as is, you’ll already have made a profit.
  • Don’t skimp on renovations just to save a few dollars.
  • Have the property appraised before you buy it. Check what other homes are selling for in the neighborhood.
  • Keep renovated properties priced slightly below market value to attract interest faster.
  • Have an exit strategy. If you have to hold onto the property, make certain you’re prepared to be a landlord if that’s your exit strategy. Landlords have different challenges with tenants and maintenance.

Getting Legal Help

The law offices of Isaac Benmergui can help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

 

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