If you’re considering getting into real estate, fixing and flipping is one of the more popular sectors to join. This consists of owners finding homes that need repairs for a minimal price and flipping them for a substantial profit.
Are you considering making an attempt at the fix and flip? Use the following tips as a guideline if you’re a first-timer to this strategy.
10 Tips for Fix and Flip
Use these house flipping tips to make your experience successful in the real estate market.
Pay for a professional inspection before you buy. This way, you’ll know what you’re investing in before you spend your money.
2. Get a Permit
Make sure you do things the right way. There are a lot of flippers who don’t do it legit, and it could spell trouble. Get a permit to avoid the hassle.
3. Know the Neighborhood
You should have a good feel for how the neighborhood surrounding property is. Avoid high crime areas to help you when it’s time to sell. You should also study the trends in the market.
4. Hire an Agent
This may cost you extra money, but it’s worth it. Hiring an agent can help you sell and find buyers when you’re ready to flip. This will maximize your profit.
5. Don’t Always Expect a Profit
You might not make a lot on your first venture, which is okay. You have to optimize your repair costs and get used to the market before you start making real money. Sometimes you’re just going to have to deal with a loss as a part of doing business.
6. Don’t Invest Too Much
Don’t overdo it on the repairs and renovations. You want to leave enough money left over to actually make something.
7. Know When to Call an Expert
It’s good to make repairs yourself because it saves money. However, you should know when a problem is too big for you to solve. Sometimes you need to call an expert.
8. Have a Backup Plan
If the market tanks and you feel like you’re going to take a loss, you need a backup plan. Renting the house until the market recovers is a great way to stop the bleeding.
9. Don’t Forget Landscaping
Don’t forget to spruce up the yard as well. Decent landscaping can go a long way in terms of attracting buyers.
10. Don’t Quit Your Normal Job
Don’t quit your normal job to jump into house flipping. If it doesn’t pay off, you could be in trouble. Use it as a way to supplement your income.
Flipping houses is a great way to make extra income, but not advisable as a full-time income. This is especially true in our current market. Play it smart, don’t overinvest, and cash in when you can. Follow these rules, and you should achieve a decent amount of profit.
Our team can help you with real estate investment opportunities. We have agents that specialize in this. Contact us for more information.