6 Must Known Tips for First Time Home Flipper
So, you are going to put your step in the house flipping and are looking for some guidance. No doubt you have come to the exact place. In this write-up, we are going to tell you the most crucial steps that every first time home flipper should be aware of.
Getting started with any of the real estate branches can be an overwhelming process unless you have a clear vision in your mind and know what you need to do. You will feel being pulled to a dozen of directions between all the available options and advice. But, once you are clear of your goals and are aware of the risks, you can manage to get success by making some smart and careful efforts. Here are some tips that will help you make a right move.
Make a plan
Before you start looking for the properties, you must have a clear idea that what you want from your business and what you should do for that. There are a plenty of questions that you should have answers for, like
– What kind of houses do you want to buy?
– Have you enough cash to offer to the sellers or you would be required to apply for a mortgage?
– What is your flipping target? Once a year or once a month?
– How much time will you spend for finding a new deal?
– Many others…
So, in order to create a right plan, you should know the answers to these questions. More clear and defined your plan is, greater are the chances of success.
Find an advisor
Advice are always helpful provided that they are given by an experienced and successful person. So, if any successful house flipper is there in your vision then you can request him to guide you and become your advisor. It would be a better idea to offer him money or a small percentage of your profit.
Make a team
In order to make deals in the real estate, you need a team. The main members that your team would include are real estate agents, money lenders, bankers, wholesalers, insurance agents, home inspectors and general contractors. All these will help you throughout the process and will let you accomplish your goals. Checkout this video on How To Build #1 Ranked Real Estate Team
Don’t delay your decision
Either you will say “yes” or “no” to a deal; whatever your decision is, take it quickly. No doubt you need to analyse some factors before taking a decision but don’t wait for too long. Being late will not only take the current deal from your hands, but it will also let many other deals go. So, take the decision at the right time; neither be in hurry nor be too late.
Speed matters in house flipping
However, it does not mean that you should speed up the deal making process. Here we are talking about the house renovations. Once you have bought a house, renovate it as faster you can and then sell it. Faster the process, bigger will be the profits. Don’t hold onto a property too long as it will cut your profits, find a reputable company to buy your house and sell for market price.
Keep the market trends in mind while renovating the property
A mistake that most of the flippers do is renovating the properties according to their tastes. But, you are always recommended to get an advice from your broker that what the buyers are expecting for the price you want for the property, and spend the money accordingly.
There are many other tips that will increase the chances of getting success in the house flipping, but you need to focus on the above given 6 steps first if you are new to the process.