Do you have a passion for house designing or carpentry?
How about an excellent aptitude for the real-estate business?
How to Get Into House Flipping
Or maybe you’re a real pure, creative soul who can see the good in everything and likes to make something beautiful out of something that others would easily overlook?
Yes? Perhaps house flipping is for you!
What is House Flipping?
The basics of house flipping go like this: buy low and sell high. You would want to score the market for a property that is either rundown enough to be disowned or an underpriced property that the owners had to bring to foreclosure. Properties like these require the need for a fixer-upper.
You can also examine houses that are undervalued for several reasons including a not-so-good location and neighborhood reputation. Maybe the house is as good as new but the market value is still low. Eventually, depending on external factors like commercial trends, the value of that property can also rise.
If you hold on to your property until this happens, then the profit is well worth it.
If not, better luck next time.
However, house flipping isn’t that simple. You have to get the right skill set to actually fix the rundown property. Or if you haven’t got any labor skills, then having a good team will do the trick.
Join Our Small Business Community
Get the latest news, resources and tips to help you and your small business succeed.
You also have to be ready with your financial plan. You can’t plunge into the risk without having a good back-up. House flipping is mainly a business, a quicker way to earn money for those who like to get active in real-estate.
ping is a quicker way to earn your money. Note that “quicker” doesn’t mean “easier”, and you have to be careful in choosing the right venture that would fit your goals. It’s also a safer investment, in the long run, giving you the chance to implement a bit of artistry into the business you are partaking in.
Look. Buy. Fix. Then sell.
That’s it. With no strings attached. You wouldn’t have to worry about the unpredictable stock market, long-time management of creaking floors and busted roofs, and the sweet, sweet quest to find tenants (no sarcasm there, promise-err).
How to Get Into House Flipping?
First things, first: make sure you have enough – if not more than enough money to buy a property, renovate it, and pay other miscellaneous fees like taxes. The experts from NewSilver.com suggest getting a real-estate loan and quickly proceed to your house flipping venture. Of course, stock up on a substantial amount of house flipping know-how.
It is ideal to have a good knowledge of the market, the potential property finds, and ways to renovate.
Saw a dilapidated property outside of town? Consider if it’s profitable. You can’t just buy a property just because nobody wants it and you have the money to do so. House flipping is all about finding a potentially profitable estate that can rival the market value of other neighborhood assets after a good, old fixing.
This brings us to the discussion of renovation. Usually, those that engage in house flipping have great knowledge of carpentry, house design, and other related lines of work. It is a demanding business – at least for the time before you had resold the property. If you have a regular job, be prepared to take leave.
Unless you have the budget to hire a professional real-estate manager to do the paper works and a close-up inspection for you, chances are house flipping will demand a huge amount of your time. If you do get past that hurdle of renovation, the next thing to do is to search for potential buyers.
Managing the transaction personally is also time-consuming so be prepared with some patience and a pleasing personality.
House flipping is a mixture of risk-taking, patience, and a keen eye for details. You have to see the potential of the property and how you can further improve it so it would appeal to potential clients. Not only is there money from it, but you’re also going to be doing an excellent job of making the most out of the properties you get your hands on.
Some other articles you might find of interest:
Would you like to better understand how to drive and increase traffic to your startup website?
Do you have what it takes to start and run an online business?