Wednesday, 14 August 2013

Flipping Houses Tips for Beginners:

The term “house flipping” refers to the act of buying a residential property, making necessary renovations and quickly selling the home for a profit. The idea would be to invest in relatively inexpensive improvements which will generate a significant increase in potential market price. Time is an important element in house flipping. Ideally, a home flipper seeks to sell the home before a home loan payment is due, in order to minimize monetary investment and maximize profit.

1. Assess available financial and professional resources. Consult a cpa to determine how much money you have available to purchase a real estate venture. Bear in mind your other financial goals and how much cash you can afford to lose. For professional resources, assemble a group of reliable contractors, landscape architects and real estate agents.

2. Research average sale prices and renovation costs. Consult a nearby real estate professional to get accurate data on recent sale prices and long-term cycles. Best House Flip, a website devoted to helping house flippers, notes that purchasing property at the beginning of a downturn may also be a wise decision because inexpensive homes are on the market via foreclosure auctions. Ask more knowledgeable house flippers about average costs for particular actions such as replacing a hot water heater or repairing a roof.

3. Visit potential properties. Take a look at properties that seem to be within your price range. Search for signs of larger issues for example mold or cracked foundations. Visit during the night and during the day to get a concept of the neighborhood’s sights, sounds and activities.

4. Include a winning bid at a property auction. Attend a town or county auction that provides foreclosed homes for low starting bids. If your list of properties is available beforehand, visit those properties to find out if they are appropriate for your budget and resources.

5. Set an acceptable renovation schedule, and put it on paper. Take into consideration mortgage payments and the availability and work pace of the project team. Give each team member a duplicate of the schedule.

6. Monitor the progress of renovations. Be on-site to handle large and small issues for example electrical wiring problems or broken fixtures that require replacing.

7. Price the house competitively to market in a short amount of time. Look over recent sale prices of comparable homes. Price the home for profit, but also to sell on time.

8. Stage the home for viewings, and wait for a right offer. The Home Buying Institute notes that house flippers don' have to fully furnish an empty house, but add sufficient accessories to allow potential buyers to visualise the home as their own. Invite potential customers to view the house and make offers.

  • House Flipping Helper suggests keeping away from properties that are in a flood zone. Potential customers will not want the hassle and increased costs of buying mandatory flood insurance.
  • Wealth Steps, an internet site dedicated to wealth building in real estate along with other areas, encourages house flippers to employ licensed, insured, bonded workers. Amateur personnel are cheaper, but could cost more over time if mistakes are made.

1 comment:

  1. These sound like great tips, thanks for the input.
    Is there any books out on the market that you recommend, to learn more about these topic and how to succeed