Whether you are looking for a new project to start or want to sneak a taste from the real estate industry, flipping houses is not a piece of cake. Amateur flippers often miscalculate what it takes to flip a home. Initially, they feel they just need to buy a home, make some fixes, have a marketing plan, and the profit will start rolling in.
Reality check: It is not as easy as they show in those online real estate reality shows.
If you are also considering taking up a flipping project, there’s something you should know. The competition is higher than you think. According to recently accumulated data, flipped houses account for around 6.2% of US home sales. The number is significantly high if you think about it. Investors are actually putting their heart and soul into flipping houses and making money out of it. So, be prepared for that.
From picking the right property to selling a flipped one, there are several things you need to look after. And things become a little complicated when you are a novice flipper. Don’t worry! We don’t mean to scare you off. Think of flipping a house as your business. All you need is adequate knowledge, concrete plans, and vision to be successful in the industry.
Here we have got you some tips that will help kickstart your house flipping project. Remember, you do well, only if you start well. So, start by learning everything about flipping houses.
Access Your Financial Situation
Before you even go looking for potential properties for your project, you should be well-versed with your financial situation. Stretching your financial limits and buying a house beyond it can make you fall into a financial crunch. You wouldn’t want that at any cost.
You need to face the fact that associating with the real estate industry is expensive until you make any profits. It would be best if you made sure that you have enough cash to make repairs and the renovation process after purchasing a home. Not to mention that you need to set aside some cash for marketing and open houses.
Refrain from making an impulsive decision and consider your financial condition with every single step. After you come up with a rough figure, you need to look for your financing options. If you are going for a mortgage, research thoroughly about what is best for you. The whole idea is to make money out of your investment and project. And it would be a bit tough if you end up spending too much money.
But what if you didn’t tackle your finances adequately throughout your project?
You’ll be surprised to know that even if you end up straining your budget in the house flipping process. There’s an easy way out for you. Well, there’s a huge chance of doing that, especially for the beginners. So, it is better to associate with professionals who can help you out with it.
In such a situation, you can sell home without listing agent to save up some money in brokerage. Yes, you can do that! It is actually an easy way out. The experts will buy your flipped home in literally ANY condition. The trick comes in handy when you can’t wait for the flipping process to be done.
Find the Right Property
The best way to start a house flipping project will be by finding an undervalued property. Let’s not forget the fact that finding such property would definitely be a huge challenge considering the nature of this industry. But if you know what to look for and where to look for, everything becomes a bit easier.
It would help to narrow down your property options based on what exactly you want to do. Do you want to demolish it and build a whole new property to sell? Or you want to go for just minor renovations and be done with it?
After finding an ideal house to flip, you need to get a professional to get everything checked out. The team of experts will take a long walk to the property and offer an estimated repair plan for you. This is where you clear your doubts about the additional costs and estimated timeline for the project.
Not only this, but they’ll also tell you about how much to bid for the property. They’ll also scan the property thoroughly and tell you everything about what exactly you need to do next to make it saleworthy.
Make Necessary Repairs
Now you’ve calculated your financial situation and found the ideal house to flip. All you need is to have a concrete renovation plan. But that’s easier said than done. Before you put a flipped house on the market, you need to make sure that it impresses the potential buyers.
For this, you need to use your vision. Create a house that your potential buyers would fall in love with. Before you set up an open house, you need to make sure that everything in the house is in sound condition. From faulty appliances to cracked walls, look for anything that might end up bothering your audience. You can even make some slight modifications to improve the curb appeal of the house.
Remember, speed equals profits. So you’ve got to spruce up on the renovation process. Otherwise, the chances of rolling profits will diminish with time. The more time you take to complete the process, the more taxes, insurance installments, and miscellaneous things you are going to pay for.
Once you have a flipped home in front of you, it’s time to put it on the market. If you have no experience in the marketing and sales process, consider seeking help from professionals who can help you generate the intended profits. Go for multiple open houses, invite your friends and other potential buyers and make your project a success.
So, now that you know everything about flipping houses use the tips mentioned above to avoid making your flip a flop show.