However, flipping houses is not for the faint of heart. You need to have clear goals, definable budgets, and a strict timeline to get everything done and sell the home for top dollar. Here are a few tips you may want to follow to improve your chances of being successful at house flipping.
Learn From the Experts
Buying cheap houses, transforming them into something amazing, and then selling them high is not rocket science. There are countless programs out there that will provide you with smart tips and tricks. Programs like Success Path allow you to learn from someone else’s mistakes. Before you approach the banks about a project, do some research to be sure that this type of wealth-building plan is truly for you. For example, you might look at both positive and negative reviews for Success Path on the BBB.
Location, Location, Location
The location of any property is more important than the size or type of structure. Rather than focusing solely on price, be sure to carefully review the local area. The last thing you want is to get stuck with a house that never sells because it’s not in the right area.
The Home Inspection
Pay for a home inspection before every purchase, and make sure that you choose a reputable inspector. The right home inspector will be happy to go through the home with a fine-tooth comb and alert you to any potential problems. Check their reviews online to be sure that other buyers have been pleased with the service. Ask them how long the average inspection will take.
A good, thorough job will take several hours for a modest 2,000-square-foot home. Additionally, find out if they will send pictures of problems along with detailed notes. If the home inspector says that he only needs a few minutes, or if she doesn’t send pictures along with notes, then you may want to keep looking.
Always Design for Buyers
When you start working on the property, always appeal to potential buyers rather than your own personal sense of style. This means sticking with neutral colors and the items that are most likely to help the house sell. If you’re working on a higher-end home, then consider adding a few expected features like soft-close hinges on drawers and crown molding.
You cannot be expected to do everything with the flip. Even if you’re happy to refinish the wood floors, you may not have the skills and knowledge required to fix sewer problems or rewire a chandelier. Additionally, you may not have the time or inclination to haul off old items that were left in the home or even the construction debris.
If you’re going to hire a junk hauler, painter, plumber, or any other professional, then be willing to pay a little more for the work. People often make the mistake of going with the cheapest services, and it shows in the results. You’ll wind up with shrinking profit margins if work has to be redone. You’ll also lose time and money if the bargain contractor you hired fails to show up or somehow damages the property.
Secret to Flipping Houses:
Finally, when it’s time to sell the house, bite the bullet and let a realtor help you. The realtor can help you determine whether the property is truly ready to sell, then they can aid in your search for good, qualified buyers. All of these steps lead to faster turnarounds so that you can get your money out, see what the profit is, and start looking for your next investment property.