House flipping is not for the faint of heart, but if you get it right you may end up finding that you are sitting on a goldmine that could help you gain some serious profit, in addition to making you more confident in your dealings in the property market.
The key to successfully flipping a house is knowledge. You need to know as much as possible about the house before you spring for the purchase, and you need to know all of the things that you need to do to turn that house into a home that somebody would be interested in living in. Follow these tips and you will be off to a good start.
Know Your Budget
The number one cause of failed house flipping is failing to keep a handle on your overall budget. You need to know exactly how much you are willing to spend and how the house you are interested in will be able to offer a solid return on your investment.
As such, never overbid for a house, no matter how appealing it may look. There will be others out there for you to buy and making a purchase that is outside your means will lead to you failing to properly renovate the house, which could lead to a failed flip.
Research Foreclosed Properties
While your estate agent will be able to help you find some potential bargains, one of your best resources is going to be companies that host a database of foreclosed houses that you should be able to get at far less than the traditional market price.
Aim to speak to banks and other lenders who will be responsible for taking ownership of a house if the previous owners have failed to keep up with their payments. They will have a list of all of the homes in their possession and will be quite keen to offload them, so if you find something that suits your tastes you may well be on to a bargain.
Know The Right People
House flipping usually involves a little red tape and a lot of work on the house, so it is important to know the people that are going to be able to help you with both so that you can get everything done much more efficiently.
This is particularly important when it comes to work on the building. Knowing electricians, builders and other tradespeople will be a massive boost, as it means you can work with people you trust and will often get a better rate for the work as you are a regular customer.
House flipping is not an industry where you will be able to make a quick buck. You need to have the time to invest into any property you work on to ensure that the job gets done right.
This also goes for the time spent looking for a property to buy. Don’t purchase something just for the sake of having it. Instead, make sure that you take your time and wait for the right property to come along.
Derrick is a Memphis native specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com