Flipping houses is an excellent hustle for people looking to make quick money. But it comes with a fair share of risks, specifically for enthusiastic new flippers who want to go too big too soon. You may end up making blunders that cost a lot of money. But a thorough strategy can keep you on the safe side. It entails picking the right properties, completing relevant renovations on schedule, and selling quickly. But nailing these steps takes a good understanding of the risks and profit potential of every deal you pick. Let us share some pro tips to make house flipping a breeze.
Start with enough cash
House flipping is like any other business, so you must have adequate cash in hand to get started. Typically, you will require 25% of a property’s value for a down payment, which can be quite a sum. Going in without enough can land you massive debts, which is the last thing you want as a beginner. You can start slow with a few properties, earn profits for them, and reinvest the cash to go faster with the business. But do not start until you are financially ready.
Know the cost of common repairs and expenses
Besides the price of a home, you have to incur several other expenses to make it flip-worthy. Preliminary research on common repairs and expenses puts you in a good place as you have a better idea of the overall cost of a deal. Talk to local contractors about factors such as flooring per square foot, tiling, and renovations. Also, check what professional inspections, insurance, and real estate fees cost. It is a proactive approach that keeps you ahead of wise investments.
Get a conveyancer on board
Although house flipping sounds easy, you should not do it alone. Seasoned flippers recommend getting a conveyancer on board. An expert professional can help you with market research, property assessments, negotiations, and sale. They can also provide valuable guidance on renovations. Get a conveyancing quote from the best professionals in your area to get a good deal. Consider a long-term collaboration to boost your growth over the years.
Look for discounted properties
Traditional real estate listings will not get you the most lucrative deals. They are more appropriate for home buyers willing to pay the market value for liveable properties. You must look for discounted deals by focusing on local auctions, wholesalers, and foreclosure listings. But remember to consider the risk factors while searching for such unique opportunities.
Nail the neighborhood
While considering deals, think beyond the homes and dig deep into the location potential. Always look for homes in credible and safe neighborhoods because families prefer them. You may even opt for an up-and-coming if it matches these factors. You can figure out the neighborhood factors by researching the area online or talking to a seasoned real estate professional. The homes in such areas are profitable as they sell for more after structural repairs and renovations with new appliances.
Although house flipping is a risky business, you can win the game with a strategic approach. Follow these simple tips to earn more profits while curbing the risks.