When asking someone about his concept of house flipping one of the common answers you will get is renovating a dilapidated property and sell it at a much higher price for profit. This is how real estate TV show presented house flipping to the viewers. They present it in a fun and entertaining way. They make everything looks easy that other important details, especially the hard ones are not highlighted. Aside from the entertainment part of flipping a house, there are other things that need to be taken care of such as:
Before jumping into your very first house flipping project, it is important to know not just the basic but the secret strategies used by successful house flippers. That way, you will be able to ensure a profitable house flipping project and you will have an edge from other house flippers.
- How to find deals
- Determining the cost
- What constitutes a great deal
- How to do the math and so on
Finding the best house flipping deals
It all begins with choosing an ideal property to flip. If you are going to search around, you will surely find a lot of properties that are in a dilapidated condition. However, not all these properties are a good deal. Your goal is to find a house at a very deep discount. Most likely, the seller of these properties are the ones who:
Once you already locate the ideal seller, the next important step is to determine whether the property is perfect for flipping. It is now time to get in touch with the house. Check the physical condition of the house, especially the structural details. That way, you will be able to know what kind of repair is needed and whether or not you can finance the renovation and be able to make a profit after doing all the necessary repair. It is also a must to get in touch with the local real estate agent as they can help you in determining a comparable price for the property.
- Faces foreclosure
- Going through marital problems such as divorce
- Behind on property tax payments
- Inherited a property
- A house needing too many repairs
- A landlord who does not want to tend to his tenants anymore
- Someone who wants to buy another house and cannot afford two properties at the same time.
If you are going to take into account the math, a real estate investor aims for a house at a 70% of resale value subtracting the total cost of repair. The resale value should cover the cost incur while holding and selling the property such as insurance payment, loans, utilities, closing cost, real estate agent’s commission, and the likes. For you to get to know more about house flipping, you should get your real estate education from Scott Yancey; a successful house flipper and realtor.
Through his live real estate events, you will have an in-depth understanding of the real estate business and be able to have specialized training in house flipping. You will be able to know the ins and outs of the real estate business, which will enable you to get the most of what real estate has to offer.