Flipping homes by definition is all about purchasing a home, renovating it, and then reselling it to recoup your money and make a profit from the sale. It’s already been established that the house flipping trend is here to stay. Whether you’re a real estate agent trying to get into house flipping or an investor that has already purchased your first home and are in the middle of upgrades, there are a few flipping practices you should know about to guide you through the process and let you come out on top when you go to sell the home.
If you’re unsure on how to flip houses or need a refresher course, read on below for a guide to the best house flipping practices out there so you can obtain the maximum profit on the piece of real estate you’re trying to sell.
It would help if you had cash or a high credit score.
Any lender can tell you that real estate investments take a lot of capital, and you’re going to need either a high credit score to apply for a loan from the lender or enough cash to buy the house outright. Check with the nation’s top three credit score reporting companies to see where your credit score falls, then head to the lender to see if you qualify for a loan. It’s going to take a pretty high credit score to get the money for such a large purchase, so be prepared. However, as an investor, you may have the cash to buy the home outright, which is, of course, the best way to go if you can.
Scout out the location and neighborhood first.
While you may find a property that looks excellent, is in decent shape, and that you would love to get your hands on to fix up, that doesn’t mean that the location and neighborhood are a good investment as well. While the new home may seem perfect, if you’re not able to sell it after the renovations are complete because it’s in a bad neighborhood, then you’re going to be stuck with a home that you wouldn’t want to live in yourself. Check out the neighborhood completely to ensure there isn’t something in the area that would scare away potential buyers before you even make an offer on the property.
Renovate the home to sell.
It’s always a good idea to renovate the home to sell quickly. Keeping in mind that renovating a home to flip is different from renovating a home that you plan to live in. One thing is the same. However, you want the home to feature up-to-date appliances. For example, when it comes to an HVAC system, Whether you’re building a new home or upgrading your own system, or adding an HVAC system to a flipped home, you want to install only the best. While you always want to keep your budget in mind, as you’re trying to flip the property when you’re done, hiring a reputable HVAC system installer to put in a state-of-the-art HVAC system can only add to the profit you’re trying to make.
Hire a great team to help you flip the house.
When it comes to a flip house, you honestly can’t do it all on your own. From the real estate agent to the contractor to outfit the kitchen and bathroom and from the private money lender you as an investor get your flip house loan through, you need people who are behind you 100%. You want people who know a thing or two about flipping a house, especially if this is your first flip and are as invested in the flip property as you are.
When you’re looking to become a house flipper or a real estate investor, you need to follow the guide of best house flipping practices above. Remember, you’re in this to make a profit, so take your time, have patience, and always keep your budget in mind.
