Buy low, sell high!
It’s the flipper mantra, why?
Because it’s the easiest way to take your relatively small investment and turn it into big bucks. Repeating this process over and over is one of the quickest ways to grow your cash and move towards financial freedom. So how do I do it?
How low is low?
Well, that all depends on you.
How comfortable are you with your current financial situation? Do you have a lot of money to invest and are you able to survive while that amount of money is “out of your hands”?
In other words, could you invest a sizable amount of money and still haven enough left over to pay your bills and feed your family? In this case, money is not an issue, and a low investment could be anywhere from a couple of hundred to a couple of thousand dollars.
Others, however, might not have that much disposable income to play/invest with, or might not have that much in savings, so a low purchase might range from $1-$50.
But how high is high? Well, that also depends on you!
Do you prefer putting all your eggs in one basket and flipping just one item? If so, a high return will be anything that multiplies the initial investment by 1, 2, 3, 10, or maybe even 100 times. On the other hand, you could buy and sell several items that have a low individual return ($5-$10 each), but a high collective return ($500-$1000 together). In the end, it’s all based on your preference. What do you like to do? What business model works best for you and your finances?
That being said, review your finances and determine how much disposable income you have. From there you can strategize on the best way to invest your money.
Dividing your money and spreading it out over various products/investments is a safe bet and a great strategy if you are a first time or risk averse flipper who wants to test the market. A good example of this strategy working successfully is in thrift or pawn arbitrage where a flipper can often buy several, low cost items and flip all of them for a couple of dollars profit each. In the end, all those sales can add up to some huge profits!
However, think ahead and be prepared! All of these items take up space while they are waiting to be sold. Invest a little money in a storage unit or let The Green Room show you how to use Amazon FBA process so you don’t become overwhelmed with inventory storage.
Spending a majority of your money on one product/investment is a great strategy if you are looking for a big return on your investment and you don’t have the space to store multiple items. The best way to find this high profit items is by doing a little research, putting yourself out there and going on the hunt!
Research eBay and Amazon for those top-selling items and commit them to memory. Go out on the hunt and look for them at your local thrift stores, flea markets garage sales and local selling apps.
And as always, check out The Green Room if you need help knowing what to look for, where to look for it, and how to sell it!