What exactly is flipping real estate? Flipping real estate involves buying property at low prices and selling the same property a few months or weeks later for a profit. A common approach is to buy a house in a good location, that only needs a few repairs, and to fix the house up and make it a suitable and attractive home. Once you are done with the necessary repairs or upgrades, you can sell the house for a profit... or at least that's the plan!
The city of Phoenix is Arizona's state capital. Population wise, Phoenix is the largest state city in the country with over 1.5 million residents. Prices of residential real estate properties in Arizona experienced a large value increase which has led to the entry of many new Realtors in the market, several real estate opportunities and investors.
Recently, several investors and Arizona Home Builders got involved in remodeling or flipping property. In the year 2004-2005, experts said that there were several 'flip' projects taking place in Maricopa County. Many of these projects involved older condominiums or apartment buildings; a common term used to describe these projects is condo conversions. Some major reasons for the increase in remodeling or flipping projects are: lower interest rates, lower lending standards, higher than normal potential profits and an increase in exposure from television shows like Flip That House and companies like We Buy Ugly Houses. Over the last couple years the amount of home 'flip' projects and condo conversions in Arizona has decreased because of the real estate correction and tightening of lending practices.
If entering the real estate industry interests you, you need to pay attention to the market forces and conditions before getting started and making any final decisions. There are frequent real estate purchasing events such as bank auctions happening in and around Phoenix, Arizona; seek out these opportunities often. If you are getting into the field to make a business out of it, make sure you seek professional advice until you gain experience.
