flip houses
Do you wonder what flipping houses in the real estate market mean? Perhaps you have a little idea about it and want to know how to flip houses for a huge profit. Regardless of your background knowledge, let’s join the club!
Flip houses can be super profitable, and it’s not a bad investment strategy for people who are completely debt-free.
Seems simple enough, right? Well … maybe not!
House flipping can also be risky, and it takes a lot of work.
So, before you officially pull the trigger, let’s go over some of the basics of how to flip a house so you know exactly what you’re getting into.
Without further ado, here’s our beginner’s guide to house flipping.
When it comes to flip houses, the age-old adage of “buy low and sell high” encapsulates its essence perfectly.
The primary objective of flipping houses is to sell the property at a significantly higher price, resulting in substantial profits.
Imagine taking a neglected treasure and lavishing it with a glamorous makeover, transforming it into a shining star in the real estate market!
However, let’s be more accurate and give you the two different types of flip houses:
Flipping houses may sound simple, but it’s not as easy as it looks.
In the next part, we’ll shed light on how flipping houses is making money and how it works.
To make informed decisions, many individuals seek the assistance of a professional appraiser to assess the property’s value.
Additionally, they rely on a widely utilized principle known as the “70% rule” to determine the feasibility of a fix-and-flip venture and its potential profitability.
Curious about the 70% rule?
Allow us to enlighten you in the next part!
The 70% rule advises investors to limit their purchase price to a maximum of 70% of the property’s estimated after-repair value (ARV), which is the potential value of the home after it has undergone complete repairs.
This rule takes into account the necessary repairs and deductions from the ARV. Now, let’s dive into the mechanics of how this rule operates.
Let’s say there’s a house you think you can resell for 6,000,000 EGP after you’re done with repairs and renovations. Start by multiplying 6,000,000 EGP by 70% or 0.7.
6,000,000 EGP x 0.7 = 4,200,000 EGP
Now, let’s assume it needs 2,000,000 EGP in repairs. To figure out the maximum price you should pay for the house, subtract 2,000,000 EGP from 4,200,000 EGP
4,200,000 EGP− 2,000,000 EGP = 2,200,000 EGP
That means the purchase price of the house needs to be no more than 2,200,000 EGP.
Don’t forget to factor in time and taxes, because they work hand in hand and can have a big impact on your bottom line.
However, one might ponder: does flipping houses truly yield significant profits and prove to be a wholly lucrative endeavor?
At Nawy, we’ll offer candid perspectives.
In the forthcoming section, we’ll touch on the pros and cons of the flip houses.
Flip houses as a trend have continued to gain speed since 2005. But is flipping a good business strategy for you? That’s what all the real estate investors will be known further. So, let’s start with the Flipping House advantages.
According to the latest data, proficient house flippers have the potential to achieve an average profit of 26.9% on their ventures. Several factors contribute to maximizing these gains, including:
You Will Develop an Understanding of Buyer Needs.
With the flipped homes action, you’ll be aware of and understand the repair plans and optimize expenditure, increasing profits. Moreover, you’ll bolster your confidence for future flips and help you spot opportunities.
Engaging in house flipping can be regarded as a relatively secure investment strategy with a great return on your investment.
Even in the event of a decline in property value during a real estate market downturn, such circumstances typically endure for a limited duration.
Unanticipated costs have the potential to erode the profitability of a house flip significantly. So, failure to carefully allocate funds for these expenditures can swiftly transform the venture into a financial sinkhole!
But, here there’s someone will ask: “How to start flipping houses?” That’s what we’ll be answering below.
Are you someone who purchases a property? Or someone considering the sale of your unit, rest assured that Nawy is here to assist you every step of the way.
Nawy is a leading proptech company in Egypt. We offer you a ton of upscale compounds where you can find your dream residential or commercial unit.
With a dedicated property consultants team, rest assured that they will help you find the best deals. And the best part?
We offer you many exclusive services and the best example is Nawy Now, allowing you to buy your unit right now and pay later.
Whether you’re looking for a unit to purchase or want to sell it, want to purchase a property in New Cairo City, or perhaps tend to own a beach house in the North Coast, there’s something for everyone.
In the upcoming section, we will check the finest compounds in Egypt where you’ll be flipping a house or even selling it for a profit.
Now, we’ll list some of the upscale projects in Cairo where you can find resale and primary units. Not just the units, these compounds boast a plethora of world-class amenities that will make you live life to the fullest.
Best compounds in El Sheikh Zayed & 6th Of October City:
Best Compounds in New Cairo City:
Tend to buy and sell a beach home? Then it’s high time to take a glance at the best resorts in North Coast listed in Nawy.
North Coast is well-known for its countless resorts that come with stunning views and endless amenities that will make you spend a memorable vacation. It’s also a fact that buying and selling real estate units in the North Coast will have a great return on your investment journey.
The best resorts in the North Coast include but are not limited to:
Are you ready to invest in flipping houses?
Whether you’re an aspiring real estate connoisseur or simply intrigued by the allure of Egypt’s property market, Nawy makes buying and selling a breeze!
For any real estate updates, insight, or even to learn about the compounds in Egypt, Nawy is your trusted partner.
Download the Nawy app, and enjoy the seamless experience.
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