House flipping is one of the investment strategy that allow the property investors to build wealth in property investment field. In order to earn massive profit from house flipping, every investors are required to have an excellent plan for it. In order to assist every of our readers to be experts in property investment field, here are 6 tips to flip a house for good profit.
➊ Invest in yourself
The very first step to become an expert in house flipping is to invest in yourself. You can’t buy a cheap house and then resell it for a profit. If house flipping is as easy as that way, we all are property billionaires already. Buy some books and attend the few seminars to educate yourself, before you even start hunting for houses.
You may wonder, what do you need to know about house flipping if you are the beginner?
➤ You must study the ins and outs of your local property market. Where is the place that most of the people want to live in? What kind of houses that most of the people are looking for? Don’t speculate about upcoming neighborhoods development at the first place. You want this house sold fast, you first need to study on the market.
➤ You have to become an expert on home financing options. Will you buy a house with cash or mortgage loan? Make sure you understand the ins and outs of home financing before make an offer on a house.
➤ Analyze how much house you can afford, and how much you can afford to lose on any deals.
➤ Enhance your negotiation skill, you need it to get the best deals (buy, sell and renovation). Remember, buy low, sell high is the main principle in house flipping.
➤ Know how to spot a good deal in very quick way. Before buying that house to flip, check on its plumbing and electrician rates, analyze how much it will costs on renovation. If its cost is out of your budget, looking for next house as getting a best possible deal is your main task.
➤ Start building network with contractors and potential buyers before you even start looking for an investment house to flip.
➤ Analyze which home improvements can boost the house value. Do check out our article: Top 9 Tips For Home Improvement & 6 Renovation Tips When Buying An Old Property. Focus on these projects and you can sell it out for a good profit.
➋ Get a mentor for yourself
If you know an experienced house flipper, ask him to be your mentor. It’s not difficult to find, by the way. You can find one if you attend the few seminars. Here’s a little trick to find a mentor for yourself – in exchange for his knowledge and advice, you offer him a small percentage yet considerable of your first profit. With this way, the mentor is motivated to tutor you and and you ensure the quality of your education.
➌ House hunting
Where can find a house for best possible price and even below market price? The answer is auctions. Every house investors like to attend property auctions to buy their investment houses. In another way, you can build relationship with property agents who understand the property investment market. In this way, if there is any homeowners want to sell out their homes quickly, you are the first that the property agent will call you up.
➍ Make an offer
Once you find an investment house that you think it’s suitable to flip, you can make an offer for it. Remember, if it’s a good property selling for a low price, there will have competitioners for sure. You can sneak by the competition by focusing a neighborhood, and going door-to-door, making offers.
Before you make an offer, make sure you know the uppermost price you can pay for a house, and still can make a profit. This includes the property price, renovation costs, repair costs, interest and taxes. Oonce you’ve set a budget for house flipping, stick on it. If the homeowner or bank don’t sell you for this price, walk away and keep looking for other deals.
➎ Proceed with home improvement
Make sure you know which home improvement projects that can complete in the short period time, and which projects will need contractors. Keep in mind that, time is money. You’ll losing profit day by day.
If you decide to remodeling the house, ensure you have get the permits with relevant department. Otherwise, you’ll lose money from serious delays and fines. It is advisable to make a timeline for remodeling or renovation projects, with associated deadlines, and the budget listed for each project to avoid delays.
➏ It’s time to put your house for sale
Pass over your house for property agent that you trust. They know the current market fluctuations and have the excellent skills and network to get you the best price quickly.
You can also sell your house by yourself, you’ll save money in agent fees. However, in an uncertain market, you might end up waiting a long time for the house to sell. If you can’t be available every time someone wants to see the house and you don’t want to host open houses, working with a property agent might be the best option for you. Therefore, like we said earlier, building relationship with property agent is essential, but make sure you’re connected with the right one.
There is no doubt that house flipping offer great profits but, also come with a great risk. A house flipper must be prepared for the possibility that the home won’t sell right away. House flippers also have to make tough decisions, like whether to accept an offer that is less than they expected, but still for a profit. If you can handle all of the ups and downs, and you have an enthusiasm for fixing up and selling homes, then house flipping might be the right choice for you.
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