What really is Land or Property Flipping?

Land or property flipping occurs when property is purchased from a seller, that is not familiar with the real estate market, and the buyer then quickly resells the property for a large profit. When properties are flipped, usually minimal, if any, improvements are made to justify a higher price. The buyer uses his knowledge of the market to create large profits. Therefore, it is important to know your buyers ability to develop and their financial strength before tying up your property.
Let's face it; there are so many get-rich-quick schemes out there that make one's head spin. This is a practical way to achieve a great financial status and stay financially successful and free -- the same way that countless others earned fortunes. The time frame will probably take at least 36 months. But it could be shorter if you have the time and dedication to work this plan full time. Many are making huge profits from real estate investment which some people will never make or keep on loosing because they fail to take into consideration little things that seem unimportant but are very valuable. These are the various things to take into consideration when going into land flipping:
1. Understand that lasting wealth is generated by owning income producing assets.

Assets are things like: rental houses, rental apartments, businesses, trademarks, copyrights, intellectual property, land, commercial real estate, and the list goes on and on. Just drive around. All the businesses you see and use, the apartment you rent, etc., they're all making someone rich. Who? The one who owns them.
So you need to understand that if you get income producing assets, you will make your money work for you, plain and simple. Generating long-lasting wealth is very possible especially when you generate income-producing assets - the kind that will keep your money working you even when you are asleep. This is the secret of all self-made millionaires and world's richest men.
2. Get yourself a place to live and a job, or a source of basic income to get you by on.

If possible, get yourself a car also. If you're not at this point yet, that's okay. However, ideally you should be at least living in your own apartment and having the basic foundations in place. The reason for getting these foundations in place is that before you go into a quite capital-intensive business, you need to be quite financially stable especially in areas that have to do with the basic needs of life.
Land flipping is not really a business to get into to start your life because it requires patience and time to study and understand the market before you go in and start making profits. But, trust me, the returns are always worth the time of study put in to become a pro at the real-estate business of land-flipping.
3. Have an eye for fixing and renovating seemingly poor but good buildings.

There are so many houses and apartments that look unattractive but only need a little fixing here and there to raise their values. Their paints may be washed out and you easily conclude they aren’t worth any trouble, but not until someone snaps them up and turn the buildings into goldmines. The ones that are the easiest to fix are constructions with peeling paint, holes in the wall, stained carpeting, or even trash in the yard.
It is necessary to keep in mind that these houses do not look attractive to most buyers and this is why real-estate investors see them as possible gold mines. It helps to use your imagination while viewing these homes or apartments, if you can visualize the finished product in spite of all the negative things around one gets to see at the first glance, and you are convinced you will make a kill, then go for it.
4. Avoid properties with structural problems if need be.

No matter what every building professional may say to get relevance, the most important thing in a building should not only be the space organisation but the structural disposition of the building, so if the need arises, you can avoid one with such problems when choosing a property to flip or better still, you can consult an engineer - precisely a structural engineer - to check the stability of the building.
On the other hand, services renovation like plumbing works and electrical works are okay if you are considering what to look for. Plastered walls peeling off can also easily be re-plastered and painted.
5. Understand the real estate market.

Real estate business like every other business requires you to have a step by step knowledge of how it works. Don’t just jump into it blindly, find out where and how you can get the most profitable buildings you can flip. No doubt the properties in highbrow areas in Nigeria usually exceed expectations of investors in real estate. Imagine a plot of land in Banana Island that was formerly sold for N32 million naira just within three months, rose to N60 million check out the profit.
You can begin by looking at landed properties and houses for sale in your area. While it is important to keep track of sales and how long the houses take to sell, it is also necessary to ask about the terms of these sales, since this enables you to understand how sellers tend to market their property. You also need to understand that properties in rapidly developing areas always appreciate fast.
6. Consider adequately the costs that will be incurred for each deal.

It is very important to take cognizance of the costs you will incur both real and hidden or virtual costs when purchasing any landed property for flipping. Almost every home will require you to spend some money before the deal is even finalized. It is a good idea to plan on writing out checks to the title company, government agencies – such as recording fees, your attorney, and an application fee for a mortgage (unless you are in a position to pay cash), and any other closing costs. These costs are called the acquisition costs.
During the period that you own the home you can expect quite a few expenses called management costs towards property taxes, utilities, lawn maintenance, homeowners insurance, mortgage payments, and many more. The longer you keep the home, the higher are expenses you are likely going to incur. Before going all out and splurging on the beautification of the house you intend to resell, it is essential to make sure that the price you will eventually sell it for will cover all the expenses that you will make, this is where you will need to incur more costs called home improvement costs.
7. Go from renting to owning.

This is a mental barrier for some real estate investors that really needs to be broken, just as much as it is a practical step to becoming financially successful in the land or property flipping business. So if you're renting a home or apartment, chances are you're making enough money and have good enough credit to qualify to move into a home. Call up some realtors and let them know your situation. Tell them how much you pay in rent and tell them that you now want to own. Even if you need to downsize to a smaller condo or whatever, just do it. The key is, you need to own.
Know that you may have to take what you can get. This often means buying a home from a seller who perhaps owns the home free and clear and will allow you to do perhaps a lease option, or carry the mortgage for you. Alternatively you get the seller of the home to carry 25% of the equity in the form of a second mortgage and then go to your bank to get the "first mortgage". Alternatively you put down 5%, get an insured mortgage and borrow the remaining 95%. The 5% can be borrowed from multiple sources such as, a bank, the realtor, a friend, your boss, so explore your options before dismissing it. Now, all this might sound complicated. But a good realtor who knows the ropes will "get you into home ownership". If they can't, you're simply talking to the wrong realtor. The right realtor will have all the connections to get you into the home. Try and find a good deal. That means you're getting into a home that the seller is desperate to get out of, and will sell to you at a discount, perhaps 10% of a discount of what the property is really worth.
Steps to take once you start owning property:

8. Immediately re-list your new home at at least 10% to 25% higher than what you paid for it.

That's where finding a deal comes in. You should have bought the home or condo at 10% to 25% discount knowing that you could immediately re-list it at that much more. Make it all nice, without spending much on it. Don't do any major renovations. Just re-list it higher and decorate it nicely like you see on those shows like "flip this house". You can get good ideas from places like: showhomes, magazines, TV shows, Internet, etc. Remember you need to do all your calculations. Factor in everything, all your expenses so that you're positive to make that 10% to 25%. So let's say on a very basic entry level, you got a home that cost you N2 million. You immediately re-list it and make 10% net profit in 90 more days. So you instantly made about N200,000. Now don't you dare spend that money! Here's what you do...
9. Start looking for a nicer and more expensive home to flip.

It still has to be one that you can get approved for a mortgage; unless the seller is willing to carry the mortgage, in which case you wouldn't need to qualify which is another good scenario to look for. So let's say you find another property for N4 million. You put down 5% (N200, 000) and the rest is financed either through a bank, or by the seller themselves. Now do the same thing over again. Make it pretty, without spending much if anything. Re-list and try to make at least 10% net profit.
10. Repeat the process a few more times.

Chances are strong that the least you'll be able to make on a flip is about N1 million as you begin to go for more expensive and choice properties. Beyond that, it can become very difficult to flip, as one would want to stay in the 3 bedroom, 2 bath homes that the majority are buying so, when you buy, you need to re-list move the home fast to avoid temptations. Continue the process for a second year. Start to flip homes continually and try to make between N500,000 to N1 million per flip. Now you should have gotten about N4 million to work with. Now that you have some serious cash to work with you're ready to join the big leagues.
11. Find a few other key properties to buy.

Some of these key properties include small walk-up apartment buildings, or commercial real estate such as retail bays, or even businesses. You need to be very careful and do your homework because this is what will move you into owning income producing assets that will take you up to and beyond the millionaire status. Shop around and try to secure properties for as little of that N4 million down as you possibly can. Go to realtors and tell them who you are, have a business card, a company name, and maybe even a website made up so that you look like a professional. Tell them you're looking for commercial or residential real estate in the form of small apartments, retail bays, strip malls, etc to invest in and that they should send you any offers that come available. Provide your business card with all your contact info, especially fax and email.
12. Start to place lots of offers.

Place lots of offers offering very little down out of the N4 million you have made earlier. Try to go for lots of offers and try to average placing only 10% down on each property with the seller carrying a second mortgage, plus a first to cover the rest. That means that your 4 million naira can leverage 40 million naira worth of apartments and commercial real estate. On average, that should generate for you approximately N200,000 to N300,000 per month in positive cash flow, plus another N180,000 to N240,000 per month in equity build up on those properties. With that kind of money coming in, you can start to afford to buy more buildings. At this stage you can still flip homes but it will now be optional.

See more at: http://www.focalsuccess.com/2014/11/how-to-start-land-or-property-flipping-business.html
You may also want to find out about the Real Estate Market in Nigeria and Investment Opportunities, check here - http://www.focalsuccess.com/2014/11/real-estate-market-in-nigeria-and.html