Top House Flipping Tips
House flipping is when a real estate investor buys a home and resell it for a hefty profit. These investors usually buy these houses at auction as that is a great way to buy these houses at the lowest price. Simply put, you just have found a cheap home for sale, put some money and effort into fixing it up and then resell it for a huge profit. Pretty easy right?
There are a few upside and downsides of this as well. You can earn a hefty profit from a small investment as well but a single step can lead you to a grave loss of money as well. This is why it is really important that you take every step carefully and with a lot of thought.
To get into this business you need to have a great amount of credibility among your connections as well. Also, a huge amount of cash is really important as well. Moreover, before you buy any house you should consider the following factors as well:
- Great location
- Prime condition
- Right renovations
- Market value
Here is the list of tips and suggestions that you remember before you start flipping houses:
- Learn your market
This is the first step in the process. You should learn about your local market. What people are interested in buying and what is the amount they are comfortable in spending with.
- Understand your finance options
Learn about all your finance options. You should consider all the pros and cons of a housing loan as well. Just make sure whatever you decide is best for you.
- Learn to negotiate
The less you pay for the house the more you get. So you should always negotiate about the price when buying any house. Good negotiation skills will even help you with contractors as well.
- Learn about average project cost
As every project is really different and it is really difficult to decide what the expenses will be beforehand. But, with some experience, you will be able to decide a rough estimate of what the project would cost just by looking at it. This way you can a better offer to the owner before buying the house.
- Connect with potential buyers
Connecting with a potential buyer is also really important. Do whatever you can to build a relationship with your potential buyers. You can connect with them through emails, newsletters and text messages. You should even consider getting yourself a realtor’s license. This way you can eliminate the need for mediators and save yourself some money as well.
- Research listings and foreclosures
You can look for listings through online websites and newspaper articles. You can look for foreclosure listing in newspapers and thereafter registering yourself for the auctions. Or you can check out Ola EC for a number of potential buying units.
- Make an offer
Once you find yourself a home you need to make sure that you place your offer. You might face some competition if a good house is on sale at a low price. You should try to seal the deal as soon as possible. This way you can pass through all the competition and unnecessary hassle.
- Relist and sell
You should relist the house on the website and on the internet as soon as you get all the necessary upgrades completed. You should not wait for any opportunity as the market is quite dicey and the prices can go high or low at any point of time.