There are those who think it’s a sure thing to buy property, fix it up, and flip it for a profit, but it’s not for everyone, and just because you buy a house in an effort to make money off it doesn’t mean you’re actually going to. It can be a lot more difficult than many think, and if you’re not careful, you could take a hard loss on your investment. With that said, it is certainly possible to make a profit if you tread carefully. So what are some tips for newbie flippers that can help increase your chances of success? Here are 5 Fix and Flip tips.
Invest in the right Realtor
Of course you should find a Realtor who is reputable and reliable and knows the local market, but that’s not all there is to it. Look for someone who has experience with finding homes for flipping, a Realtor who can not only walk you through the home buying process, but also help you with flipping should you have any questions.
Find a good inspector
Hiring a good inspector is key to flipping a home. You need to find a home that is structurally sound from top-to-bottom; the last thing you want to do is shell out your money and find out later on that the house that looked to be in good condition is one storm away from falling down. For a few hundred dollars, you can hire an inspector to thoroughly check the home and possibly save yourself tens of thousands of dollars.
Do your research
Homes that are perfect or close to it don’t stay on the market long, so why is the home that you’re thinking of flipping still available? It’s a must to do this research and find out. Is something wrong with the soil? Is it in or very near a high crime area? Maybe it’s near tracks and shakes every time the train goes past. Regardless of the reason, it’s vital to find out what that is before you put your signature on the line.
Know your financial information
It’s not enough to simply consider what you’re paying for the home; there’s also a lot more money you’re going to have to shell out. Figure out the total amount for everything that you can afford to pay, this includes the cost of the home, inspection cost, Realtor fees, home improvement costs, etc. You don’t want the home stuck in your possession long after you should have sold it because you didn’t anticipate certain costs. Figure out how much you can afford, get an estimate on absolutely everything before you commit to it, and stick to your budget.
Target the major flaws first
If you’re so busy replacing the tile in the bathroom because you don’t like the color or you’re putting in granite countertops, you might not have any money left for the really major repairs like fixing dilapidated porches, mold issues, or a damaged roof. Always do the most important home repairs first so you know how much you have left over for the smaller, unimportant repairs.
Before you jump into flipping houses, it’s important to take the process slow, do your research, and really take things step-by-step if you want to do it right, especially as a newbie flipper. It’s the number one best way to increase your chances of success.
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