Tips for Fix and Flip Success
Once you decide to jump into the fix and flip of homes, it can sometimes be difficult to be successful right away. It’s important to educate yourself and learn from other’s mistakes so you can set yourself up for success early on. Here are some tips for improving your house flipping experience.
Do the Work Yourself
If you’re not a contractor, you probably don’t know everything about remodeling homes. Hiring professionals to do all the work for you can add up, and it takes away from the overall amount you make when it comes time to resell. There are a number of online and in-person resources to help you learn the ins and outs of remodeling a home, so take advantage of these so you can do the easy work yourself. Also educate yourself on the codes and laws in your area to ensure you don’t run into problems come inspection time However, it’s still a good idea to hire professionals for complicated work like electrical or plumbing to ensure it’s done correctly.
Homes in good neighborhoods are undoubtable easier and more profitable to fix and flip. Look to buy homes near parks, shopping centers, and good schools. You can change just about anything in a home, but you can’t fix the neighborhood it’s in.
Contract with a Trusted Realtor
Realtors can take upwards of 3% on the sale of your home, so any money saved here is significant. If you’re in the business of flipping homes, it’s worth your time to find a trusted realtor to contract with. If you agree to work with him or her to buy and sell all of your fix and flip homes, they’ll usually be willing to cut you a deal on each one so you can avoid high realtor fees.
Look for Foreclosures and Short Sales
Once you contract with a realtor, they can help you find great deals on the housing market. Foreclosures and short sales are great options for purchasing homes at incredibly low prices. Be aware, however, that some may be in need of significant repairs. Often times the extra work is worth the high payout in the end.
Much of the best advice you’ll get for flipping homes is from people in your community who are already doing it. Look for fix and flip conventions or expert panels in your area to get advice on flipping homes in your specific area. This combined with the basic tips listed here will help ensure you’re successful in the house flipping industry.