You buy a house, renovate it and then sell it. This is what happens when you flip a house.
It sounds easy. So is this all there is to it? Believe me, it isn’t. There are a lot that goes into each of these three steps and you need to have all the right information before you venture into the business of residential real estate flipping.
Professional flippers who have been in the industry for years and celebrity flippers who we see in shows racking up good deals can attest that there’s more to it than just buying, renovating and re-selling.
Before buying that house, make sure you read through these house flipping rules to make the most of your investment and make each one a residential real estate flipping success.
Buying Residential Real Estate
To profit from your investment you need to buy smart. Everybody knows that impulse buying will not yield great results. You need to spend a good amount of time finding all that you can about a property before you make an offer.
1. Conduct thorough inspections
Don’t take everything at face value. Inspect the property diligently so you’ll know exactly what you’re getting and have a close estimate on what you need to budget for the renovation.
2. Consider the location as much as the property
Even if you do an excellent job at renovating a house, if it’s located in a neighborhood that’s in decline, you will not get a good deal out of it. Go for properties in growing neighborhoods. Properties in neighborhoods that people want to live in will sell faster and at a higher price.
3. Avoid buying at market value
Look for properties that are selling below market value as this will give you instant equity. If you buy a property at market value, you can’t immediately re-sell it at a higher price as you’ll need to wait for the market to catch up.
Renovating Residential Real Estate
When it comes to renovating your residential real estate, remember these three points.
4. Focus on the kitchens and bathrooms
Kitchens and bathrooms are the prime selling points of a property. Most buyers decide on buying a property depending on these two rooms. Make sure that you focus your renovations on the kitchens and bathrooms first.
5. Don’t personalize
Remember that the house is not for you but for a potential buyer. Avoid personalizing the renovation or else it might not sell. Go instead with simple and universal designs that will attract a wide market.
6. Consult professionals
Don’t hesitate to ask help from professionals. Whether it’s for repair or home staging, it’s always best to let the professionals handle them. Trust me. Your investment will pay off. There’s a huge difference between a house styled by a Do-It-Yourselfer and a house styled by a professional.
Selling Residential Real Estate
7. Create a marketing plan
Market your property using as many platforms as you can. Follow traditional marketing methods like giving out flyers, putting up signs and posting on print ads. Also, use modern strategies like marketing your property online through social media and blogs.
8. Have a backup plan
Things may not always go your way so it’s best to always have a backup plan. Properties might not sell right away so your carrying costs will pile up. Buyers might also back out at the last minute. Make sure you have something you can fall back on once things don’t go as planned.
House flipping is something that involves a lot of hard work. If you just do it haphazardly, then you will only lose on your investment. It is important to take your time and give your all to each property so you can make it into the best that it can be.
Take note of the tips above and always follow them to make each of your residential real estate flips a success.
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