A handful of shows on TV have featured house-flipping as a way of life. They show the ups and downs of getting into the business. It looks like fun and you might be wondering if it’s something that you should get involved with.
You can decide if that’s the case by taking inventory of your personality and what you have to put into it. Flipping houses is going to be a pretty serious time commitment.
Though it looks quick on TV, reality is different. You have to be someone who has the amount of time that it’s going to take to dedicate to a project. If you’re stretched too thin right now, then you need to wait until you have the time.
You also have to consider what’s involved that may be out of your skill level. Flipping a house can sometimes mean that you can’t handle everything that needs to be fixed or spruced up on your own.
You’re going to have to hire someone to help you. Many people who get involved with house flipping have a team that they work with. They’ll have an electrician, a plumber, and several other people who can professionally do whatever task is outside of their league.
You have to look at the cost involved. You need to be able to know how to find a good home to invest in. A good flip home should be priced low enough so that after you repair what needs to be fixed, you have a tidy profit.
That means you can’t pay market value for a home. One idea is to look for fixer-uppers that don’t have serious issues in established or even high-end neighborhoods if you can afford it, buy it, bring the condition up and then sell it.
You do have to be able to buy that house, which means you have to have some sort of financing ready. This is a step that should be decided before you even look at homes to buy.
To decide if house flipping is right for you, you want to examine your reasons for going into it. If it’s because you think it’s something that’ll make you rich fast, then that’s the wrong reason.
You can make a lot of money flipping houses, but it’s not something that you can rush. It’s something that builds your income house flip after house flip. Your first flip or two is to get you started.
There will always be risk involved in real estate properties just like in any other venture, but the rewards you stand to reap can be substantial. If you have some money already on hand that you can invest in buying a flip house, you’re a hard worker and you don’t give up easily when faced with challenges, then home flipping is probably right for you.
Here are some tips:
1. Understand the process of the flipping house
2. Study your market
3. Align yourself with the right help
4. Know your budget — and add a buffer
5. Prep your credit
6. Know what makes a good location — and a bad one
7. Steer clear of major issues
8. Consider ordering materials yourself — but don’t DIY everything
9. Be hands-on with your team
10. Move quickly
11. Bring in a pro if you’re not prepared to market and list the home yourself
12. Consider staging
13. Have a backup plan