Flipping homes for a living is an exciting career that gives one the freedom to be a self-made entrepreneur who can work at his or her own pace to achieve goals that are their own. However, house flipping is an art and it takes years for one to become successful in this occupation.
If you’re new to house flipping, the following expert tips will help you kickstart your career on the right foot.
Learn to seek out distressed or dilapidated real estate at throwaway prices
Whether you’re buying a house for flipping or to hold on to it for a while till prices go up, cracking a deal at just the right price is essential. You’ll never make the profit you expected if you don’t buy a property at a price that will allow room for required renovation and rehab and still turn out to be a great deal when you sell it.
A house flipper needs to develop an astute sense of finding houses that will sell at a profit after all costs. However, remember that a property that’s available at dirt-cheap prices will likely require a lot of work—and you don’t want to end up with a house that’ll be tough to sell even after a grand facelift.
Arrange funds to get the ball rolling
If you’re new to flipping, it’s best to dive in after you’ve arranged sufficient funds to make your first purchase and to meet the rehab costs. Lending companies will charge a heavy interest rate, but they are your best bet when you haven’t yet established yourself and private real estate investors don’t know who you are. If there is someone indeed who will loan you the sum for purchase and repairs at a decent interest rate, consider yourself lucky and get going full throttle.
Flipping homes is as tricky as it’s fun, so you need to commit yourself fully to each home you purchase with your own money—or someone else’s.
Don’t cut costs
Want to establish yourself as a trusted flipping expert in the local real estate market? Never try to cut corners when refurbishing a home or commercial property. It takes time to build reputation and trust in real estate, and seasoned investors won’t be interested in long-term partnerships with an agent who does not value quality. So whatever you’re trying to fix when renewing a home, hire the best contractor for each job and tell them exactly what you’re looking for.
Also remember that affordable does not mean cheap and poorly done. The key is to make a cost estimate that will include all possible reconstruction work so that you don’t fall short of funds when the project is nearing completion.
Looking for more expert advice on how to grow and succeed as a home flipper? Head to Flipping Junkie, a blog that’s an absolute powerhouse of extensive information and real-life experiences of a seasoned flipping expert couple who love what they do and like to share their knowledge with aspiring flippers.