House Flipping

So you're intreseted in house flipping?

The Steps of House Flipping

Here are the basic steps to get you started

      1.) Find a house that's reasonably priced, you don't want to over pay because it will just take away from profit in the end

       2.) Fixing up the house, pick the best upgrades that will bring the best return, limit your upgrades and don't over spend

        3.) Selling the house, do want ever it takes to sell, the longer the house sits on the market the more it's taking out of your profit

Building Your Team

when it comes to building the perfect team you're the boss, each person on your team has a function and will make the difference on your profitability

1.) Accountant

2.) Attorney

3.) Real Estate Brokerage and Agents

4.) Title Companies

5.) Appraisers

6.) Home Inspectors

7.) Mortgage Broker

8.) Insurance Broker

9.) Repair Services

10.) Contracting and Remodeling

Pro's and Con's

Here are some of the pro's and con's to help make your decision on if house flipping is fit out for you

Pro's

- personal pride in a vision very few can see

- Gaining experience and furthering your education in area's such as:

        1.) Construction= understand costs of materials and will be able to spot big issues

        2.) Local Market= talk to a realtor or browse the internet to get the best understanding on what people are looking for

        3.) Unanticipated Costs= budget for unexpected costs like a building permit, construction delay, and holding costs

Con's

- Stress= finding the right property, dealing with contractors, and meeting your deadline

-Difficulty Selling= longer it sits on the market more profit your losing

-Holding Costs= Paying the mortgage, taxes, and insurance

Education and Licenses

Don't necessarily need an education but if your looking to make it into a career these are the licenses to make you successful

         - Real Estate License

         - Brokers License (Agents work under real estate company)

Quick Little Tricks, Hints, and Tips

First impressions are everything when selling the house

If the house looks unappealing from the outside, buyers may think the inside is just as bad

Make sure all walls have a fresh coat of paint

Repair cracks and remove any evidence of previous problems

Wash all windows and mirrors so their sparkling clean

Unfinished basements should be as empty as possible to show the potential of the space

By keeping the garden weeded, the lawn mowed and the grass green there is a 50% higher chance your house will sell

Be aggressive in your negotiations when looking at purchasing a property, and make sure you make a realistic estimate on how much the project will cost you

Making Money

Find the Right Property

- Find a property that can be fixed up quick and easy without tearing it down and starting over

- Make an offer and don't over pay for the house because it will just hurt you in the long run

Find the Right Contractor

- Finding the right contractor is key, look for someone who focuses on homes that are the same age and style as yours

-Don't part with too much money at one time

Set a Timeline

-Always set up a timeline with your goal in mind, it's necessary and mandatory to success

-Always set realistic  and attainable goals, an un-written goal is just a wish

-Time is money, each month you have the house it just adds to the mortgage resulting in loss of potential profit

Sell the Property

-The longer the property sits there the more money you're loosing, do what ever it takes to get your asking price and make a profit

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