If you believe that house flipping is your ticket to wealth, then there is no better time than this to test the waters. Property prices are fast approaching the bottom, and even if prices do get softer, it most likely will not be by much.
However, keep in mind that house flipping is not for the faint of heart who will run for the hills at the first sign of trouble. In more ways than one, house flipping needs to be considered as a form of business with all of its attendant demands, although the business may not last forever, but certainly it can earn you bucks in short time.
Hopefully, the following tips for house flippers will make your adventure more pleasurable and profitable.
Tips To Flip A House
- Build Relationships: Having a large network of real estate professionals will make the job of house hunting less time consuming. Furthermore, some of these insiders may have done some house flipping of their own and have an extensive network of home remodelers at their disposal.
- Price: The rule of 70% should be adhered to. Overpaying for a property or not having extensive knowledge of how much the property can sell for are recipes for disaster.
- Taking On More Than You Can Handle: Make money on one property sounds good, but making money on two or more sounds better, doesn’t it? Do not fall into this trap.
- Neglecting Curb Appeal: Renovations are the area that can turn the investment into a really profitable proposition or a sink hole. A very common problem encountered by first time house flippers is to concentrate on the interior to the detriment of the exterior. Remember what people say about first impressions. Remodeling the property’s interior to your own ideas of suitable living may not be the road to prosperity.
- Landscaping, replacing the entry door and worn out outside sidings are much more advantageous to spending a good chunk of money remodeling all the bedrooms. Replacing countertop with granite or quartz is more productive than a full blown kitchen cabinet replacement. As houses have been lived in for so many years, replacing outmoded items will give the house a fresher look, as most buyers prefer blemish free properties that are in move in conditions.
- Attics can be especially helpful, as they can be turned into living space, not just a place to discard things that are no longer useful. Turn them into cozy little getaways.
- Internet / Telephone Connectivity Options: In a survey conducted along with Realtor Magazine and HouseLogic.com, the 2011-2012 Cost vs. Value report from Remodeling Magazine finds that it is not the most extensive and expensive remodeling projects that provide the most value. Tips for house flippers veer toward the common sense and hope to lead to many happy returns on investment.
One last but important thing I would like to suggest. Never invest your whole life savings into this business. Make sure the capital which you invest in flipping business shall not affect your life-style, if it gets stuck for longer period.