- Profit Is Made When You Buy, Not The Sale Of Your Flip
When you fix and flip a house, your money is made when you purchase the house not at the sale of the house. So, many times people buy a house with the intension of making a huge profit only to find out that they could not make any profit after all at the end of the flip because the purchase price of the house was too high. When you purchase your property, you need to be sure that you factor in renovation costs, carrying cost, a contingency budget and a profit for yourself.
- Get a Full Home Inspection On The Home
Get a complete inspection done on the property. By, spending a few hundred dollars on this expense you can save thousands in the end and identify problems that you cannot see. Foundation problems, Termite problems, Wood Rot, Etc… By, getting a full home inspection, you can rest assured that you know everything that is wrong with the property before it’s too late. In the purchase agreement for the house, you need to make sure that you have sufficient time to have a thorough inspection preformed, and if the inspection finds problems that are going to cost more money than you are willing to spend, you can get out of the contract with no penalties.
- Don’t Do The Work Yourself
Get a contractor or several sub-contractors and have the work done quickly. You need to have you house renovated ASAP, so that you can get it on the market and get it sold. When I started flipping my girlfriend and I did a house together, and we did all the construction. I figured I would save thousands, but it took us over 3 months to get the work done that a contractor could have had done in a month. We were trying to save money on our flip, did all the work on our time off and after work, and it just took too long. On our 2nd flip we used contractors for almost everything and had the house completely flipped with a new roof, new air conditioning, new hardwood, and much more in only 3 weeks. We did not have to spend all our time working on the property and were able to spend that time looking for the next deal. This is how you get rich in real estate.
- List The Property 1- 2% Percent Below Market Value
If you are wanting to flip real estate and make money the object is to buy and sell the property as quickly as possible, so that you can move on to the next house. If you purchase a house and try to sell it at top dollar to make an extra couple of thousand dollars on your flip, and end up holding it for 6 months you are losing money. Get the house on the market at a price that is going to blow the competition away, and you will sell it no matter what the market conditions. On our second house, the market for selling houses went down due to the housing market as a whole, and the tightening of the loans across America. We were told that you could not sell a property in this market, but we went ahead anyway and flipped our house. After 3 weeks on the market we had 3 people wanting to buy the house. Why, because we offered it at such a great deal that people wanted to jump on it. That is what you have to do especially if the market is slow.
- Use A Real Estate Agent to Sell
Do not try to sell you house on your own. Harness the power of a real estate agent and the power of the MLS system. When you do a FSBO you are depending on people driving by your house and seeing you sign, with a real estate agent you have someone actively marketing you house to get it sold. Once again this will free up more time for you to look for more great deals. If you want to help the process, I have found that craigslist and listing you house on Zillow can help too, but I use these tools with the help of a licensed agent to make sure I have all my bases covered.
I hope this article has been helpful with the basics needs of flipping a house. If you will study and learn you will make money. But, do your homework before you purchase a house, and make sure that you can generate a profit on your deal. Then, make it happen!
Jack BUYS Houses – Orlando is Central Florida’s premier house buying company. We pay CASH for our properties, which allows us to close in as little as 7 days. We purchase all types of houses, As-Is and in any condition, so there’s no need to fix up the property. If you or someone you know needs to sell their house quickly for any reason, please visit our website or CALL 407-307-3245 NOW and say, “I WANT A CASH OFFER FOR MY HOUSE“, and you will get one in 24 hours, GUARANTEED!!