Property flipping is the new most commonly practiced real estate trend of the 2000s. While it is one of the safest real estate investment arenas, house flipping can also guarantee a profit (big or small) for certain. This makes house flipping one of the best strategies for first time investors.
If you’re considering putting some good money to use for a real estate investment and flipping the property for a profit, acquainting yourself with the procedure is a must. To find success in what you’re doing, you must know what you’re doing. You might think we’ve made it look easy, but there is not much to property flipping besides these 6 steps which have been comprehensively elaborated on below for you.
Step 1 – Educate Yourself
It’s easy to find investment property quickly. However, once you educate yourself about the nuances of real estate, you will understand that investing in the very first home you stumble upon is not the best idea. Study the real estate market, browse through listings to get a fair idea about the types of properties available, examine good and bad neighborhoods, learn the real estate lingo, acquaint yourself with basic Math and study various buying trends before you make your first investment.
Step 2 – Start Networking
It is essential to know that you have professionals you can trust even before you get going with that investment. Network with local real estate agents, potential buyers, real estate experts and contractors like plumbers, electricians, architects, interior designers and landscapers. You will need professional help before, during and after investing.
Step 3 – Research & Shortlist
There are a number of websites and countless print publications which provide real estate listings. Once you’ve decided what type of property you wish to invest in and you’ve set your investment budget, keep looking through listings to find the best suited investment properties. Once you’ve researched the various features of your shortlisted properties, narrow down your choices further.
Step 4 – Make an Offer
Make an offer on the home that best suits your investment criteria. You are likely to face competition from other investors. To strike the deal, you will have to make a good, clean offer. However, if you lose out, you can always turn to your other shortlisted prospects.
In order to make the best offer, make sure you consider the market value of the home and include an estimate for renovation and / or repairs (if any). Set an uppermost and lowermost price by ensuring that you will still make a 20% profit on the uppermost purchase price.
Step 5 – Start Preparing the Property
Once you’ve sealed the deal and have completed all the necessary paperwork, get going with the repair and renovation work on the property. Ensure you waste no time in preparing the property for resale so that you’re ready to sell it when the time is right.
Step 6 – Relist & Sell
Once the property is all set for resale, relist it by advertising the sale and spreading the word about this brand new home on the market. Consider multiple offers from potential buyers and accept the one that assures you the highest gain.
Experience the rewards of house flipping with the above 6 easy steps.
