House flipping can be both lucrative and risky, but one thing is certain, it never lacks excitement. No property is the same which makes every house flipping project unique. Those who acquire more experience in this profession can juggle more than one project at the time but for a beginner, it is best to take it one step at a time. With that in mind, here are 6 pro tips to help you realize a maximum profit at the onset of your house flipping career.
The first issue that needs to be addressed before you enter into the world of house flipping is your budget. Since you are planning on enhancing it and not falling short or not making any profit, you need to ensure you have enough capital for buying the property and possibly a smaller renovation project. This means you need to look into the best options for a loan, based on your credit score and installments you would be able to cover.
However, one thing you need to be ready for is that there will inevitably be a cost or two you weren’t counting on. It might be a pipe that would need repairing or a storage place for the previous owner’s things, you need to put some money aside just in case or take out a larger loan. All in all, the success of your undertaking depends on your budget, and as always, it is better to be safe than sorry.
Although the nature of house flipping may seem completely whimsical to some, it requires a lot of research. It is a unique combination of knowledge and luck and in which proportion depends from case to case. Luck is something that we rarely have any influence over, but knowledge is something that can always be extended.
So, what you can do to ensure, at least as much as it is in your power, that you acquire a property you can quickly earn from is to research into the up-and-coming neighborhoods. What you should be looking for are areas that exhibit the development of new infrastructure, streets widening or shopping centers construction. This means that the prices are currently not that high, that the properties are relatively new and therefore require little to none investment so that you will be able to flip them fast and for a good price.
If you want the one people to call when they are planning on purchasing a house, you have to ensure they find a way to you. People used to open newspapers and go through the ads, pick up the phone, and set up a meeting. Nowadays, modern technology allows you to subtly impose your presence (e.g. your website) without them realizing that you are making any deliberate effort to be ranked high among the search engine results.
The trick is in a carefully implemented SEO (Search Engine Optimization) strategy that will help you climb the Google’s ranking ladder and become more visible to your target audience. To achieve this, your website also needs to be associated with reputable websites and blogs from the real estate niche. Therefore, many (solo) entrepreneurs use white label SEO services to ensure they have an SEO strategy that is tailored to their needs. Leaving this element in the hands of professionals will give you time to deal with pressing matters.
Most people who are inexperienced at house flipping get anxious about the actual flipping part that they forget to be vigilant and place great care on what they purchase in the first place. Finding a buyer quickly won’t matter much if the property you purchased is a derelict shack masking for a family home. Don’t forget that one of the key ingredients in the recipe for a successful house flipping is finding a property that requires minimum investment.
To make sure you know exactly what you are buying, it is best you have the property checked out by a professional home inspector. They can reveal issues with the foundation, walls, roof, plumbing and give you an assessment of whether something is a hazard waiting to happen or if it can be easily fixed. This will be an additional cost but it can save you a lot of money and give you confidence when the time for flipping comes.
If the property you obtained doesn’t demand serious remodeling, that usually means that you will have no problem finding a buyer. However, to increase its value a bit, you can consider making some small changes fall more under the category of aesthetics. Now think, what is it that you can work on to leave an amazing first impression? That’s right, tend to the exterior.
Perhaps the smartest move is to change the front door - remember, people want to feel safe in their new family home so replacing a worn door with quality ones that match the architectural tone of the property will make all the difference. In addition to that, you should consider putting a fresh coat of paint on the exterior walls since this investment is not expensive but it can liven up the house’s exterior a great deal.
And last but not least, don’t be reluctant to consult with experts from any field. When deciding on the initial loan, you can always turn to a financial adviser since this decision is fundamental for your career in house flipping and if you make a few bad financial decisions, you can jeopardize even your savings.
Also, partnering up with a real estate agent can be a good move because firstly, they understand the local housing market and current conditions so you will get the right information immediately. Secondly, if it so happens that the house needs some work done to it, an agent can find you the services of the affordable yet experienced contractors. Also, the agent can help find the buyers and set the right price.
Even if your first venture in the world of house flipping isn’t a complete success, unless it jeopardized your budget, you should persevere and try again. Learn from those mistakes and use that knowledge to write a few rules of your own while you fight your way through the house flipping business.
By: Lilly Miller
Lilly is a graphic designer and a passionate writer. Loves everything about home decor, art history and baking. Shares home with two loving dogs and a gecko named Rodney. Based in Sydney, but world is her playground.