Tips on How to Flip a House
Although this is not a new concept, flipping houses has become very popular as a money making venture. Many real estate investors enjoy "flipping houses," or buying and selling houses quickly for profit. Now mind you, not all flips have to be fixer uppers. However, rehabbers make millions turning ugly houses into dollhouses. On the other hand, some inexperienced investors lose money buying houses that just don't turn a profit.
If you're looking to get started investing in real estate by fixing and flipping houses, you'll want to know what type of property to buy. In this instance there is no substitute for a good real estate agent. My team will be able to help you locate the perfect home to flip and once you have it ready for sale, we will help you price and sell your investment home for the most money possible in your market. We have included three tips to help you get started.
1. What is Your Market
Your first task, exploring your market, helps you know a bargain house when you are presented with one. With our free CMA (Comparative Market Analysis) you willbe able to look many houses for sale in your area. Keep track of sales trends and how long the houses in your market take to sell. We will be able to tell you of these recent sales because so you understand how sellers market their property.For instance, if a seller paid closing costs for the buyer, did the price rise from the listed price accordingly? Or, did the seller come down on the price and also pay the buyer's costs? We will be able to explain to you the sales that sell quickly, what home features and financing options prompted the fast sale?
2. Sweat Equity
When you first start out in your real estate "flipping fixers" business, you'll want to look for houses needing only cosmetic work. Look for houses that just need cleaning up, painting, and new flooring. This work is called 'sweat equity'. Sweat Equity is one of the fastest and surest ways to rapidly and substantially increase the value of your investment. Use your imagination when viewing these homes. Try to visualize the finished dollhouse as you look at structural features and the surrounding homes. Make offers on the ugliest houses in decent neighborhoods. Don't be afraid of stinky houses that show horribly. Search for fixers with peeling paint, holes in the wall, stained carpeting, and trash in the yard. Remember, these houses won't look good to most buyers, but other real estate investors see them as gold mines.
3. When to say "No thanks"
When you're new to real estate investing, always remember your limitations. Use caution when considering houses that need structural repairs. Some rehabbers replace walls, plumbing, structural beams, sub-flooring, and electrical systems. These experienced real estate investors acquired those skills after years of experience or they have the money to pay for professional help. If you find a house with structural problems, get estimates from reliable contractors to do the work. If the walls have too many cracks and bumps, you may need to hang new sheet rock or hire a professional plaster refinisher. Check for signs of plumbing problems such as water stains under sinks and loose flooring, and get estimates for professional repair. Take professional estimates into account before deciding whether or not to purchase an investment property. Any big expense decreases your eventual profit.
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