Suggestions
- Take a look at your budget to see if you have the assets to flip a house. You don't necessarily have to have cash to do the flip, but you will need to have a good credit score to receive the financing needed to buy the house you want to flip as well as the money needed for the repairs.
- Find a real estate agent you can work with. This agent will be able to keep an eye out for houses that are priced low because they need some repair. The agent can see them on the MLS as soon as they are listed and give you the heads up.
- Look for a house that is priced low that just needs cosmetic work for your first flip. You need to slowly gain experience, and this is a great way to get started. You won't get rich overnight, but you will learn valuable lessons that will help you make big money with flips later on.
- Take a contractor that you trust with you to look at the house. Together, come up with a timeline in which the house could be completed. This should be done before you put in an offer on the house. If the contractor tells you it will take six months to complete and you can't afford to hold the mortgage that long, then you will know this deal isn't for you.
- Make an offer on the home. Your real estate agent can help you decide whether to offer full price or come in a little lower.
- Get your permits as soon as your sale is final. If you don't get your permits ahead of time, the county could shut you down in the middle of your flip. This will cost you extra money in labor as well as costing you in time. The longer it takes, the more mortgage payments you have to make, which decreases your profit.
- Focus on fixing up the bathrooms and kitchens. Make them the way a buyer would like them. They should look clean and modern. These are the rooms that really make or break a sale.
- Spruce up the yard. You need to make the outside look inviting to buyers. If they drive by and don't like the look, then they won't even stop and come inside. It is worth it to hire a landscaper to do a little yard work to get ready for your open house.
- Appraise the house and put it up for sale. It is beneficial to hold an open house over a weekend, when many people are off from work. It is best if you let the real estate agent do this for you and then have him call you and tell you how it went.
- Sell the house as quickly as possible to make the most profit. The longer you hold the property, the more profit you lose. You may not get asking price, but you should get enough to make a decent profit.
- Reinvest the profit of your first flip in to a second house that might be a little bit more work.
Tips
- Make sure you have the time to keep an eye on the contractors, plumbers, electricians, and painters, as many flippers have caught them slacking off or not showing up when they were suppose to.
- Get estimates for all of the repair work ahead of time so you can make sure you have enough financing to cover the costs. You are going to lose money if you end up not being able to complete the repairs.
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