Beginner’s Guide to House Flipping
Flipping houses is all the rage lately. It seems like every time you change the channel, there’s another TV-ready couple showing how great it is to fix and flip, and investment in ugly houses suddenly looks fun. It indeed can be an exciting adventure, but there are a few things you should know before you start your fix and flip and investment.
- You Don’t Need Your Own Money
Are you afraid that you can never flip houses because you don’t have hundreds of thousands of dollars lying around? If so, you can stop fretting about that. There are other ways to start your flipping business without pulling from your savings.
You can go to a traditional lender, like a bank, or you can look elsewhere. Investors surround you, but you have to be willing to ask. You may be able to find an angel investor or venture capitalist who is looking for someone just like you.
- It Takes Time
Forget the television shows that have full home renovations done in two weeks or so. That may work with great video editing, but it’s not the reality for most house flippers. It takes time and hard work to flip a house. Furthermore, it may take a few tries before you feel like a professional.
Don’t let setbacks in your first home scare you from the business altogether. The fix and flip and investment game can take time to master, but it can be well worth the patience.
- Don’t Be a Lone Wolf
You shouldn’t expect to go about flipping houses alone. Even the best flippers have a team of people on whom they can rely. It may pay to befriend contracting professionals in your area that want to work with you.
- The Faster, the Better
This may seem contradictory to number two on this list. However, it’s important to find a balance between cutting corners to finish quickly and dragging your feet. If you didn’t pay for the home outright, you pay interest on every month you own it. So, the sooner you can finish and sell the house, the less interest you have to pay and the more money you can make.
- Be Smart with Your Money
It can be tempting to get the best flooring and highest-grade countertops when you design a home. However, it’s vital for you to budget wisely. Depending on the neighborhood, you may not be able to sell the house at the price you need if you spend too much money.