"Looking for potential in properties"
WHAT IS IT?
In the case of house flipping an investor buys a house that has potential to be renovated and be more profitable in the market. Pure property flippers are real estate investors who do not renovate the house. The house already has the intrinsic value necessary to resell the house for profit.
IF I AM THE INVESTOR, WHAT CAN I EXPECT?
For the starters in investment house flipping would not be the easiest option to start with. For house flipping people need an idea about real estate valuation, renovation, marketing and sales. This includes some risk in the estimates for the renovation and potential resale price of the house. It would be helpful to consider a partner with experience in estimating renovation prices or real estate prices. A big risk would be to not be able to sell the house due to the mortgage you have to pay.
CONCLUSION
Overall flipping houses can create quick returns but it is necessary to have deep market knowledge.