According to the The Chicago Tribune, “The number of homes flipped in the Chicago area more than doubled during the first nine months of 2013.”
As the economy has gone up and down over the past few years so has interest in flipping Chicago houses. More and more people have recognized that real estate investment has upsides along with downsides. Still, that hasn’t stopped plenty of Chicago real estate investors from taking their chances.
One popular real estate technique making a comeback is Chicago house flipping. This is where an investor buys a home, invests in it and attempts sell it for a profit. The technique lost its appeal for most people when the real estate bubble burst, but as demand for housing increases steadily so does interest in home flipping.
This is a reminder that the Chicago real estate sector is vibrant and active and that flipping Chicago houses is alive and well.
This can be seen as a bit of a double edged sword. The high amounts of flipping going on is a good sign of confidence coming from experts, but it also means that there’s a lot of competition out there. This shouldn’t necessarily scare away potential flippers, but it is a fact that must be taken into consideration.
The Dangers of House Flipping
If your only knowledge of flipping property comes from television and magazine articles you might think that the process doesn’t involve any risk. Unfortunately this isn’t the truth. Buying a Chicago house is a big investment in itself, and making a real improvement on a home’s value requires further investment. If you’re not careful you can easily end up paying more than you’ll be able to make back.
It’s also important to remember that a home is only as valuable as the price you can get for it. You can buy a home for $200,000 and pour another $50,000 into it and still find yourself unable to find a buyer willing to pay $250,000.
You also need to remember that investing is a long term process. You can’t expect your new property to turn a profit overnight. This means that if you want to make a proper profit you have to be willing to pay for your investment property for weeks and even months past the time you expect it to sell.
Whether it’s an investment property or your personal house selling your Chicago home takes patience. The difference is holding onto investment property means paying for two homes, something most people can’t do long-term.
Taking The Plunge
Every investment involves some risks. It’s important to look at the risks of Chicago house flipping because so many only know about the rewards. Watching people buy and flip houses on TV is definitely entertaining but it’s important to remember that what you see on the screen is usually different from the reality you’ll actually face.
In the end, caution is key when making any real estate investment. Before taking the plunge you have to be sure that you can handle the responsibilities. Properly flipping a Chicago house requires a major investment in terms of both time and money.
If you decide that you have what it takes to properly flip a Chicago house then you have quite the adventure awaiting you. If you play your cards right you can turn a tidy profit. The key is taking all necessary precautions to become truly prepared.
Chicago Real Estate Specialists – Call Now 1 -773-671-4663
Hands down, RE/MAX Associates are the most knowledgeable agents with the experience and community connections to assist you with in your home purchase across the globe. Customers going through the home buying and selling process know RE/MAX Associates as “The Real Estate Leaders®” and why no one in the world sells more real estate than RE/MAX.
Call us today for a list of Chicago homes for sale currently available in your area of interest. We offer a variety of comprehensive real estate services for buyers and sellers in the following counties:
- Cook County IL Real Estate
- Will County IL Real Estate
- DuPage County IL Real Estate
- Kane CountyIL Real Estate
- McHenry County IL Real Estate
- Lake County IL Real Estate
We look forward to speaking with you!
Adam Balawender, Realtor, CDPE
Real Estate Pro Chicago Remax, City
Cell Phone: 773.671.4663