It takes a lot of time and energy in order to make money flipping houses, and it’s certainly not for the faint of heart. Don’t just jump into anything right away; do your research. Education increases your chances of success tenfold, but what do you need to know first? These are some basic tips for flipping a house.
Before you begin, you should speak with a financial advisor about potential lenders. If your credit score isn’t high enough, you’ll never even make it to the first step.
First and foremost, determine location. Will you be flipping houses where you live, or will you be able to travel while you take on these projects? Regional economies can fluctuate and are difficult to track, but that’s what you’ll need to do in order to make this work for you. Research buying and selling prices in various markets, and determine the kind of profit margin you’d like. Will you buy an expensive home in a big market for a big profit, or would you prefer to start small?
The value of the home is important. Unless you’re an expert salesperson, you’ll want to start with something well below market value and work your way up until you find your sweet spot. Can you talk the talk?
The best flippers know how to fix something up fast without spending a fortune. Part of that formula is determined by construction. If you need to tear down walls and fix foundations in order to make it look presentable, you’ve got the wrong house. Think about cosmetic changes over structural changes. Don’t purchase houses that are riddled with mold or infestations. That’s money down the drain, and there’s no guarantee the problem won’t return a week or two later. If you don’t have any experience with design, now’s the time to research what people look for and how to give it to them.
Before deciding on the best house to flip, do a personal appraisal. Get yourself a blacklight, and walk through the home in order to find as many potential problems as you can. Finding them now will spare you innumerable headaches later.