Even though Patrick Finney has become one of the top real estate brokers in the Denver area, he still enjoys what inspired him to get into real estate to begin with.

Flipping houses.

The Denver housing market has become the ideal place to flip a home. This summer, the average home spent just 60 days on the market – which, according to TheDenverChannel.com, means that “finance companies are willing to take the risk.”

But the investment can also be a risk for the person flipping the house. That’s why Patrick Finney offers these three tips that will have you investing like an expert.

Three Lessons about Flipping Houses

Buy low.

It’s not rocket science, but if you don’t buy at the right price, you may wind up doing all the work for nothing or at a loss – which is just devastating and painful. There are some easy and low-cost ways to improve a home, such as adding extra rooms (Start Today) to a property, so the cheaper the home, the higher the potential for profit. It goes without saying that you will make a greater profit from buying a low-priced property that needs a lot of work doing to it, than buying a high-priced property that is more or less ready to be resold with a lick of paint and a good gardener. When you choose to buy low, there is freedom in how you renovate the house using professional services such as can be found from Home Alliance.

You never get a 2nd chance to make a 1st impression.

Think re-sale. Don’t save a nickel when it will cost you a dime on resale. If you’re hesitating, you probably need to go with the better product.

For example: windows. If you think “I can get away with 30 year old windows” but you remodel the rest of the home, buyers will notice. Or worse, if you do a 100% remodel, yet you don’t replace the front door and/or hardware (and it looks rough), you won’t be making the first impression that you need to. It’s important that all renovations carried out are done to the highest standard so it can be worth hiring the best professionals for the job, like the ones from kalahari-electrical.com/grayson/ and similar websites.

Potential = money.

An investor would typically buy a property that has the ability to increase in value with the right repairs and improvements. Building pool houses is one way to maximize the potential. A customer will be instantly interested in something like this because it allows him or her to enjoy the views near a pool without having to enter it.

The buyer would definitely say, “This home has amazing POTENTIAL!” If you just get wrapped up in a home’s “potential” sometimes you can look beyond the true costs of what it takes to go from “potential” to “amazing.”

And guess what? Amazingly, your pocketbook will shrink too…which brings us back to the first tip!

Looking to invest in a flip? Work with an expert!

Patrick Finney is the owner and managing broker of FINN Real Estate in Denver, Colorado. He has been named a Five Star Agent by 5280 Magazine seven times and has over 15 years of industry experience with $240,000,000 of real estate sold. He is an active supporter of many non-profits, including the National Multiple Sclerosis Society and the Leukemia & Lymphoma Society.