If you’re set on becoming a house flipper, you probably have a good head for business and an eye for real estate. Still, it’s easy to make mistakes when flipping houses, as many factors are beyond your control. So, here is this summary of dos and don’ts to help you sidestep common pitfalls and increase your chances of making money.
Do get to know the neighborhood.
Before making an offer on a house, there are many things to know about a neighborhood. You want to see the market, the history of the area and its demographics, school rankings, and crime rates.
Also, ensure you’re familiar with what other houses in your area sell for. For example, if you see that homes in your neighborhood sell for $300,000, but yours is listed for $300,000-plus, you might want to reconsider putting in an offer!
Don’t be afraid to make small moves.
You don’t have to overhaul your entire house to make it more attractive for buyers. Instead, start small and work your way up.
For example, you could choose to paint only one wall in a room rather than the whole room. This will give prospective buyers a better idea of what they can do with their ideas if they buy the place.
Do plan for success.
Successful house flipping is about preparation and planning. Before you jump into any project, please determine what you want to accomplish, when you want to achieve it, and how much money you’re willing to spend.
It doesn’t matter if the house sits on a manicured lawn in the best neighborhood in town or has been abandoned for years with broken windows and no doors or is just a lot that requires the help of Custom home builders—if you don’t have a plan, your business will fail.
Don’t think you’re in this alone.
The house flipping game is a team sport. Think again if you think you can do it on your own. You need to bring in some help to ensure that the process goes smoothly and that no one is getting burned.
When you’re flipping houses, it’s tempting to do everything yourself. After all, you’ve got a lot on your plate: you need to find the perfect property, negotiate with the seller, bring your contractor lined up, and ensure that every step of the process is done correctly.
But if you try to do all these things yourself, you’ll have a lot of stress and no time for the fun parts of house flipping—like seeing your hard work pay off!
Do get your team together early.
Getting your team together early is essential if you’re thinking of flipping houses. You should have a real estate agent on board who can help you find suitable properties and negotiate with sellers. You should also have a contractor willing to do the work needed to make the property livable.
You should also seek out mentors in the field so that your knowledge is up-to-date and relevant to today’s market conditions. In addition, a mentor can guide you through any challenges along the way so that they don’t become roadblocks keeping you from success as an investor trying their hand at flipping houses for profit!
Photo by Monica Silvestre
