Tuesday, October 6, 2009

Three Ways to Flip Houses in a Down Market

Posted by Nicholas Vanikiotis

RISMEDIA, March 16, 2007-My team and I flip houses in Michigan, where the housing market is currently experiencing a significant slump. Wherever these dips in the market occur, they often discourage investors, particularly novice investors, from flipping, but you don't need to get discouraged. With the right adjustments, you can flip houses profitably in a depressed market.

I suggest three strategies for successfully flipping houses in a down market:

- Focus on foreclosures.
- Look for deeper discounts.
- Buy and hold.

Focusing on foreclosures

When the housing bubble in a particular area bursts or rapidly deflates, neighborhoods are often littered with homes that have had all the equity stripped out of them. While declining property values erode the equity in the property from one end, homeowners borrow against the equity from the other end, until nothing is left. The market now has a glut of properties with little or no equity

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