Are you new to house flipping and don’t where to start? This complex money-making strategy has been broken down into a simple checklist of things to do to ensure a smooth flip, which as you would see isn’t that easy, but it can be fun if done the right way, having the right people around you. Here’s your House Flipping Cheat Sheet
A. HOME BUYING – This is where the future of your investment is decided. This is where you research your proposed home, prepare your budget(repair, marketing etc), and calculate your ROI in advance. Whatever decision you make here will dictate the tone for the rest of this project, which makes it the most important part of your investment strategy. Don’t forget the saying that goes like this,
“In real estate, you make money when you buy.”
You have to analyze your exit strategy even before you go in. Get this step right and you’re in for a cruise.
- Prepare your finances and make a budget.
- Research the neighborhood for the best selling or rental property.
- Find a ridiculously underpriced home that fits into your budget and category above.
- Find out the cost of repairs (You may need to involve a general contractor).
- Calculate your ROI. Anything between 10% – 20% is average. Greater than 21% is considered above average and less than 10% may not be worth it. It all depends on your capital and the amount of work going in.
B- REHAB – Set your budget and prepare a schedule first. While working with the best professionals you can afford, renovate this property with the end-user in mind and you’ll have no problem selling it.
C- MARKETING – Do not spare any social platform, Whether or not you hire a professional realtor, you need to get as many eyes on this property as soon as possible.
D- SELLING – Review the purchase offers and go with the one you thing is best. This marks the end of one journey, and hopefully the beginning of another.