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Fix and Flip

Not everybody who is dreaming of a home in sunny Florida has the courage to buy a house knowing that he or she has to spend more money on top of the purchase price in order to finally get the house he or she is looking for.

Property values in Florida increased by 10.4% in 2016, in the Cape Coral - Fort Myers area 9.9%. It is sometimes difficult to find the right house and therefore more and more buyers prefer new construction so that they don't have to make compromises buying an existing property. But with increasing land prices and growing construction costs, this is not necessarily an alternative for everyone.

Why not throw your attention to homes that at the first glance are not appealing to the "average buyer" because they are outdated or have to be renovated?

You do not have to go straight into the category of "house-flipper", but you are currently in good company with a constantly growing number of real estate buyers who want to make or already make money with buying, renovating and selling.

The Wall Street Journal had dedicated an article about "house flipping" at the end of the year 2016, which indicates that this market has become very attractive and has once again reached the 2007 level in the first 9 months of 2016. According to the company ATTOM Data Solutions cited in the article, it is expected that by 2016 $ 48 billion will be available for financing of house purchases, the highest share since 2006.

Since the middle of 2016 it has been noted that many large banking institutions - Wells Fargo, Goldman Sachs and J.P. Morgan Chase companies that finance private "flippers", e.g. 5 Arch Funding, LendingHome Corp, and Asset Avenue Inc. In the meantime, a very hot market has developed, especially in California - and as the past shows, it is only a matter of time when it reaches Florida.

Investors in California make an average profit of $ 61,000 per "flip", while in 2009 they made only $ 19,000.

There are many TV shows (e.g. HGTV) every day offering the whole spectrum of all possibilities what you could do in the real estate market.

In addition, numerous institutes and consultants offer seminars on how to make money in this area. Demand is high with an upward trend.

So why not jump on the moving train and participate in buying real estate that needs to be renovated?

The fact that there are sufficient possibilities in SW Florida can be demonstrated on this example: a single family home in Cape Coral on a gulf access canal was bought for $ 200,000, renovated for approx. $ 100,000 and sold for $ 369,000.

You only need to have a vision to see that many rough stones can become a splendid crystal if you only work it properly.

There are enough professionals who can be consulted. And you should take their advice if you are not familiar with the location of the house, the value and the condition of the property. Call your local trusted real estate agent first.

You do not have to follow the flippers, you can keep this crystal for years and one day when you want to sell it call your real estate agent again.

And that is how it can look: before - after

Before:

After:

Photos : Carney Properties