A Successful house flip is the joy of every real estate investor. It’s like watching an idea you’ve nursed grow, become refined and polished and it finally pays off. Apart from the sense of fulfillment that comes with flipping a house you’ve prospected, fixed, and flipped, there’s the cash that comes into your account and the bragging rights (you know what I mean). Now, there is no fixed approach to recording success at flipping and flipping but season real estate investors have discovered a few hacks that have helped them succeed in the past and we’d be sharing those hacks in this blog post.
What is house flipping?
Mainstream media would have you believe house flipping is easy, you watch house flipping shows and you assume man it must be easy to spot a property, make some renovations and sell it for a profit. Well, you could be right and you could be very much wrong. House flipping is much more than TV would have you believe, you can right identify a house, but you have to be sure the property would bring the expected return and that you would be able to flip the house on time and also the market dynamics in the state. In literal terms, House flipping is when a real estate investor buys a property with a view to fixing it and reselling it at a later date. The process involves buying a house, making necessary repairs to upgrade the house to habitable and socially acceptable standards, and sell the house for a worthwhile profit.
Steps to a successful house flip
If flipping was as easy as TV shows would have you believe, why aren’t we all billionaires. Here’s a bunch of insights we’ve gained from seasoned flippers:
- Understand your market: This is what the flipping TV shows wont reveal to you. You should ensure your understand your local real estate market and ongoing trends in the market. Is it a buyers market or a sellers market, do people want to live in the kind of house you’re trying to flip, what neighborhoods do people want to live. Its important to know the income bracket of your potential buyer so that you can be able to flip the house fast enough.
- Know your financing Options: Have a solid plan on how you want to finance the purchase. Are you going to be using cash or consider an home financing option. If you don’t have the cash, immerse yourself in knowledge of home financing options before you apply for a loan or make an offer. You don’t want a situation where loan repayments take a chunk of your profit
- Cost Of Project: Every house is different, learn how to estimate the cost of fixing the property. Identify which features you want to incorporate into the house to increase the value of the property.
- Scout Listings And Foreclosures: You can check out foreclosure listings on zillow or auction.com . Your local newspaper is also a good directory for you to find foreclosure listings.
- Contractors: Find good and reliable contractors who are invested in renovating the house to acceptable standards and are creative about the features they can add to the house. Its advisable to have a reliable contractor that you’ve been working with and already understands how you work and the quality you expect.
- Reselling: You can decide to enlist the help of a realtor to help you resell the house. A realtor has access to multiple listing services and a network of buyers. If you feel that you have the required network of buyers, you can decide to sell the house yourself.
The foundation of a successful house flip is you being able to spot that house that has the potential for high flipping return. Skip tracing helps you with skip tracing and finding homes discover rare gems in form of houses and providing you with necessary information required to make a purchase.