Have you ever dreamed of quitting your dreary job and making a fortune within weeks? That is not just wishful thinking – in fact, many celebrities and realtors are making big bucks by house flipping. A successful house flip is much like Pimp My Ride TV show: you take a house, repair and customize it, and then sell it off for a small fortune. Sounds interesting? It certainly is, but there are a few things you need to bear in mind before you go in wielding sledgehammers and power drills.
1. Get your bucks together Before you even start looking for a house to flip, make sure you
have the funds for the project. Experienced flippers start with solid cash or have emergency funds or ready resources to cover higher than expected real estate costs or unanticipated renovations, utilities and/or taxes. If you do not have the funds already, get a mortgage or find an investor/partner for the flip – 50% of final profits is not as good as 100%, but it is still better than nothing.
2. Pick your prize property Choosing the right property is essential to a successful house flip. Follow real estate sale listings closely and when you finally see a house that fits your budget in the right location, pounce on it immediately. Foreclosures are every flipper’s dream come true in terms of price, but in some cases, such homes require extensive renovation and may not be worth the investment. Beginner flippers should have a home inspector, real estate agent or professional team of contractors as their personal think tank backup– a tip from those in the know can save you tons of cash and time when
flipping houses as a novice.
3. Team up for speedy profits However skilled a handyman you may be, flipping a house may take a while, and the longer the real estate stays on your hands, the higher the total flip costs will be. That is why hiring experienced repairmen and renovation experts is your one-way ticket to a fast flip: the sooner the work is done, the better the odds of hauling in massive lucre will be. When enlisting contractors, look into their reputation – they need to be both fast and efficient. Aesthetic details such as fresh flooring and storage space updates can be remedied easily, but electrical rewiring, structural problems and plumbing issues need to be taken care of by a pro to minimize risk of follow-up repairs.
4. Up the final figure After major repairs and floor plan redesign have been tackled, see where an extra investment may help up the house value. Curb appeal is considered as a priority among home improvement projects
for as many as 39% U.S. homeowners, so a dolled-up house exterior and enticing entrance may prove a highly rewarding endeavor. Impact on outdoor living and lifestyle considerations should also be looked into: as many as 21% of homeowners pay close attention to the state of insulation, roofing, usability of solar panels and geothermal HVAC solutions. Landscaping the backyard can increase home value by as many as 10%: spruced-up containers, fresh mulch, water feature repairs, and colorful plants for the flowerbed come at a relatively small price compared to their stake in the final figures.
5. Clinch the best deal With the flip done, list the property in real estate ads and spread the good word. When potential buyers come knocking on your doors, either negotiate the price on your own or hire a solicitor to do the work for you. Bear in mind that selling real estate fast at a price lower than the one you had in mind is better than paying extra for taxes and utilities for months on end for property you are not living in.
Still here? Great news: you are now officially ready to start flipping houses like a pro. Good luck!