Thanks to popular home flipping shows on networks like HGTV, there are many people trying to make a quick buck flipping houses. There a few things the pros follow to make a profit on the houses they buy. Use this as a guide before making your first purchase.
Any business should have a business plan. Even if you think this is only a hobby, you should consider making a business plan which includes a budget, scope of the project and a timeline. Professional real estate investors like Steven Taylor landlord have a budget in place before searching for another property. A budget lets you know what you can afford if the house doesn’t sell right away. It also lets you know the type of house you can purchase and how much money you can sink into it to flip it.
You need to know who you can use should you buy a property. The properties you buy are going to need some work and unless you’re very handy, that means knowing contractors. The sooner you can build those relationships, the better you are able to flip the house when it’s time.
Unless you have the funds to purchase the property outright, you need to secure financing. Not all banks will lend to house flippers especially first-time investors. Working out the details on financing before you make an offer on a home is a smarter way to invest. You can then know how much funding you can get, how much you can spend on renovations after the purchase and what you need to sell the property to make a profit.
Before you buy a home, you need to conduct some market research on the area. How hot is the market? How long are homes staying on the market? What is the average sale price? Knowing the target demographic and buyer interest in the area can help you make a better purchase. Market research can also help you determine the best price to buy and sell to make a profit. Generally, you want to buy a house in a cold (buyer's) market, advises TSquareProperties.net, because you'll have more options and sellers are more willing to negotiate.
Newly middle-aged wife of 1, Mom of 3, Grandma of 2. A professional blogger who has lived in 3 places since losing her home to a house fire in October 2018 with her husband. Becky appreciates being self-employed which has allowed her to work from 'anywhere'. Life is better when you can laugh. As you can tell by her Facebook page where she keeps the humor memes going daily. Becky looks forward to the upcoming new year. It will be fun to see what 2020 holds.