Flipping Houses: Quick Guide
In the last ten years, there have been so many TV series that show the possibilities behind flipping houses. They are great to watch and give great tips on how to make the most of what you have and make a profit.
So is it any surprise that flipping houses are more popular now than ever? Not really, no. There is a lot of research that you need to do, not to mention looking into the finances and finding the right construction partner like Rise Builders.
If you are still unsure what house flipping is here is a quick rundown:
It is the process of buying a house that needs some work, doing the job, and selling it for a higher price all within a short period of time.
Assuming you have the finances ready, then here is your crash course.
You need to have your finger on the pulse of the housing market that you are intending to head into. If you are interested in putting your money in an area you aren’t familiar with, then go and spend some time there. Check out previous house prices, talk to other homeowners in the area. And you can even approach real estate agents in the area to get even more of a feel.
You’ll need to be aware of the taxes that will apply, the property law and what fees and regulations might be applicable to you.
This is a business, there is a lot of money involved – if you aren’t using a business plan to guide you, you might find you flounder after your first house. Write down all the particulars of the decisions that you have made. Locations, money, you can even make educated assumptions of your cash flow for the next 5 years.
You might feel like superman or superwoman a lot of the time, but it isn’t too likely you will be able to take this on alone. You should look to recruit a team of professionals. If you are determined to save even more on the flip, then you’ll need to call in friends and family to help you get it done. Here are a few team members that you might like to consider:
- Investors or business partner
- Contractors and Craftspeople
- Legal Expertise
Not in the house (but you should consider it), but in your budget. Whatever you think you will need to make the work happen, double it. If you have done the process a few times, you will have a firm grip on what you will be spending. If you are just starting out – expect it take longer and cost more.
During the lead-up, and the starting of your flip, make as many contacts as you can. Build relationships with industry professionals, investors, contractors and handymen. You will be able to get more competitive prices, her about upcoming projects and get the inside track on market changes in certain areas.
There is a lot of skill involved in flipping houses, but you can make a great living from it, as well as build a diverse portfolio on the way.