Flipping houses usually looks so glamorous and very easy on TV that many people are enticed to get into the business. They are lured by the promise of high volume and easy money, which is not always the case. In real estate flipping, you need to have more information on the business for you to succeed. To engage yourself in flipping houses profitably, read on to know what it involves and how you can succeed.
What do you need to get started?
A credit score is one of the things that you need and this because you are investing in a high risk property. Also, you need a bigger down payment, especially if you are not buying outright, free, and clear at an auction. Another thing that you need to know is the real estate market itself and most especially houses. Just like a good shopper who cares about her hair cannot go shopping for just any shampoo, if it is a volumizing shampoo, she chooses the best and if she is looking for a good shampoo for oily hair (see here), she thinks before making any choice. The same goes to a real estate investor. You cannot just go buying every house you find. You need to be aware ofjust how deep the money pit goes.
What to look for in a house to flip
This goes without saying. You just can’t go and buy a house hat is in undesirable neighborhood and then expect to reap profit. Always make sure that the house is in a good location, most preferably in a city where people love to live.
Check a house’s condition before purchasing it. Besides, you wouldn’t want to start rebuilding it from scratch. Get the one with sound structure that can easily be renovated and give you profit.
You need to make sure that the price of the home is below its value in the real estate market locally. Never buy from a picture of a foreclosed home online. It is good to always analyze the property in person just to be sure.
Get a mentor
If you are new to this business, I recommend you get a mentor, someone who has successfully been flipping houses. You can offer to cut him in the deal as they can’t refuse. Besides, you will only do it for your first home.
Research listings and foreclosures
There are numerous websites offering foreclosure listings. Just check a home’s background including repairs, renovations, and additions. This way you will be in a more ideal position to make a good decision.
Make an offer
After you have found a good home, make an offer on the home but you need to be sure of what you are willing to pay for the house and still make a profit. If the owner does not sell you for the price, just walk away. You don’t need to go broke for a bad investment.
Once you get a home, you need a permit before you can get down to remodeling it. Do this right after the sale. This way, your contractors will be able to get job done quickly and within budget and avoid fines and delays.
List and sell
Get a real estate agent. He is worth the money. If you decide to sell the house on your own, this might take you long since you do not have many connections when compared to an agent. Moreover, showing your house to potential buyers consumes your precious time.
In conclusion, flipping houses offers a great risk but it comes with great rewards for those who succeed. In this business, you need to keep in mind that the house might not sell right away, and be able to decide whether to take prices that are less than what they had earlier planed and still make a profit. If you can withstand that, then this might the career for you. Always remember that luck is where opportunity meets expectations.