Are you looking to get into real estate investing? Could you use some solid house flipping advice?
Reality shows make the art of flipping homes seem easy and exciting. And, while house flipping can be quite a creative and lucrative adventure, you’ll need to use a little wisdom to keep your flip from becoming a flop.
Here are some of our favorite house flipping tips.
Why Flip Homes?
Flipping homes gives you the potential to make a great profit. If you’ve got another job, you can learn the business and begin earning some excellent income while you keep your monthly paycheck.
There is also a lot of personal fulfillment that can come from flipping homes. You’ll be learning to take an unattractive home and create something beautiful for future families.
You’ll also gain great experience as a house flipper. You’ll learn to negotiate sales, apply for loans, and hold others accountable. It’s also a great way to apply skills of prioritizing and time management.
As a house flipper, you’ll also learn a good deal about construction. You’ll learn the basics and costs of plumbing and electrical repairs, as well as environmental hazards.
If you’re interested in growing your career in the real estate or construction industry, house flipping can be a valuable experience. You’ll grow your network of professionals and learn to take pride in your vision, as well as your financial returns.
It’s important to ask around and get some great tips from experts in order to become successful.
1. Find a Great Location
One of the best tips for flipping houses that you’ll hear is the importance of location. It may be easy to find a fixer-upper with great potential in a dwindling neighborhood.
But factors like crime or a depressed economy are out of your control as a real estate investor. And you won’t want to end up losing money on the home due to a lousy location.
You’ll want to do a little research and find areas with rising real estate prices and employment growth. You’ll also want to research safety and schools so you’re sure families and couples will be eager to move in.
It’s important, however, to avoid paying prices that are too high in very hot markets. This could lower your profits.
2. Structurally Sound
If you don’t plan to simply raze a house and put up a new one, you’ll want to make sure the bones of the home you’re renovating is strong.
Take a look at the home’s electrical systems, plumbing, and HVAC units to make sure they are in good condition. As a beginner, you may simply be looking to renovate kitchens and update paint and carpeting in order to make a quick sale.
You’ll want to avoid homes that need completely new plumbing or wiring. Mold and roof replacement are also expensive problems you’ll want to avoid when you first start out.
3. Reach Out to a Private Lender
Private lenders usually require low down-payments. They’re also more interested in your project than they are in you as a borrower.
If you need cash for your project fast with increased buying power and profit potential, reach out to a reputable local private lender.
4. Make Sure You Have a Building Permit
You may have found a perfectly flippable house in a wonderfully desirable neighborhood. If, however, you don’t go through the proper channels first, you may find you have a rather big problem.
Not having a building permit can lead to big fines and even lawsuits. Any potential buyers could also have trouble securing a mortgage.
You can save yourself a lot of time and headaches by getting the proper paperwork in place before you build.
5. Don’t Overlook Curb Appeal
Many home builders are focused on the changes they’re making to improve an overall building structure. However, an unattractive view from the street can really keep potential buyers from knocking on your door.
Make sure to regularly mow the grass and trim the hedges on your property. Other landscaping touches, such as colorful flower beds, can also help to improve your chance for a sale.
6. Don’t Over-Improve
You’ll need to know your neighborhood, as well as the types of returns you can expect to get on your investment.
It can be tempting to invest in details and extra accessories to really make your house pop. But you’ll want to honestly think about whether or buyers in the area will be willing to pay more for those kinds of improvements.
7. Look For Poor Designs and Cosmetics
You’ll want to choose a house with a good basic structure before you invest. Think about factors like the roof, ceiling joists, and floors.
If, however, you’ve got some poor cosmetic choices in a great neighborhood, you may be looking at a gem. Strange paint colors, old carpets, and grungy sinks and toilets can all easily get replaced and refinished.
8. Use a Real Estate Agent
A real estate agent will have the know-how required to point out the best selling points of your flipped home, as well as negotiate a good deal. If you don’t have any experience as an agent, you probably won’t want to skimp on finding a qualified salesperson.
Our Favorite House Flipping Tips
House flipping can be an incredibly rewarding experience. Before you embark on your exciting profit-building adventure, get familiar with some expert house flipping tips so you can gain confidence and success.
Don’t stop getting smart about real estate investing now. For qualified private investors, contact us today.
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