Flipping a property can be a lot of work, but if you pay enough attention
to the right details, it can be a great money-making endeavor. There are
five basic things you should know before actually flipping a property that
will help you bring in more revenue.
1. You will make your money at the purchase, not the sale. If you buy a
house with the intentions of making a large profit when selling, you will
most likely be very disappointed in the end. Often times, money is not made
after all the renovations have been completed because the price at which
the home was purchased was too high. When buying the property, make sure
you do so with enough money to make renovations and have carrying costs.
You will then need to add on extra money you’ll need along the way. Make
sure to have several thousands of dollars to work with here because as you
already know, things rarely go exactly as planned. That way you won’t be
stuck trying to make enough money to actually pay for the renovations that
are to come.
2. Be sure to have a complete inspection done on the property. While this
will cost you a few hundred dollars, it will save you thousands on those
problems that aren’t visible to you. This includes: foundation problems,
pests, rotted wood, and numerous other things that will be quite costly to
repair once you are the proud owner. Allow seven days for the inspection to
take place. This should be specified in the contract. That way if the
repairs are going to cost more than you are willing or able to spend, you
can get out of the contract without paying a penalty.
3. Don’t make all the renovations yourself. Instead, hire contractors to do
it for you. This will ensure the job is completed more quickly; after all,
you need to flip the house as soon as possible so it can go back on the
market and you can make a sale.
4. When placing the property up for sale, do so at 1 to 2 percent below
market value. Since the objective of flipping a property is to buy and sell
quickly so you can move onto the next home, you want to do everything in
your power to shorten the time span between buying and selling. If you try
to sell at top dollar, you will most likely wind up with a home that stays
on the market for a long period of time, in which case, you won’t be making
money. Instead, beat the competition by flipping quickly. If you flip several properties in a shorter amount of time, you will begin seeing a
5. Use a real estate agent. This will work better than trying to sell the
property yourself. When you utilize the services of an agent, you are
gaining not only the knowledge and power of someone who knows how to really
sell real estate, but you are also gaining the power of the MLS system. An
agent will actively market your house which will increase your chances of
making a sale more quickly. This will also free up more of your time so you
can go out and search for more properties to flip.
Use these five tips and begin making money flipping homes today. Remember,
as with any other process, be patient and go after what you want. This, in
the end, is how you’ll see a profit.