House Flipping--the old adage of buying at a low price and selling for more has been turned on its head with the rise of house flipping. Nowadays, it's not unusual to see individuals making their living as real estate investors through this practice alone! These can be high risk investments so it's best to know as much as you can before getting started.
Here are just a few of the things you'll need to do to get started.
Know Your State and Local Regulations And Legal Requirements
If you are planning on becoming a house flipper, the first step is researching local regulations and requirements. You can either go online or contact an experienced real estate agent for help with this process since they will know what rules need be followed in order to enter this business successfully!
Don't skip this step. We highly recommend spending as much time as you can researching as much as you can about house flipping. Read blog posts, watch YouTube, talk to experts. Do as much study as you can.
Round Up Your Resources
You'll need to gather your resources – both financial and human. You will, of course, want a down payment saved up for buying houses outright or if that's too much trouble then at least some cash on hand ready now just in case there are any obstacles along the way such as contractors who can help with renovations depending upon what skills they have available themselves.
Do you know which contractors you're going to use? What about plumbers, electricians, HVAC specialists and pest control to name but a few.
You'll want to already have a team on speed dial and have these relationships built beforehand.
There's nothing worse than having to spend days and days looking for the right contractor. Every day in house flipping is costing you money so time literally is money.
Learn How To Assess Properties
The best house flippers identify undervalued properties and start by looking for ones that are listed low. The fundamentals of the land, location in relation to other homes or commercial space nearby (elevation differences), size if it's vacant lots all factor into whether this would make an ideal investment opportunity.
You will also want to get good at sourcing out homeowners that are willing to sell but haven't listed their home yet. If you can secure a private sale, you're going to save money and avoid having to bid against other flippers.
Making Your First Flip
You've built your team, learned the rules and have started to hunt for listings. You are now ready to make your move (pun intended). Keep an eye on foreclosure rates because as these go up, more opportunities might arise. Because this is your first flip, concentrate on learning the process without losing any money. Of course, making money is the goal, but take notes and soak up everything you can. Each flip is going to be slightly different. Buy the right home, fix it and sell it. Fast.
Find An Experienced Real Estate Agent
When you're ready to start your search for flip-ready properties, you'll want an agent that is familiar with house flipping and understands the timelines, permitting process and also has a good knowledge of contractors, lenders, etc.
Contact our professional real estate team and we'll share a variety of local home listings that will be able to provide a healthy return. I'm ready when you are.
Cover Photo by Destiny Wiens on Unsplash
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