House flipping is a fun way to make some extra cash these days. All you have to do is invest in some real estate and go in and make some updates and then sell the house. You’ll make a profit and be on to your next flip. Sounds easy, right? Oh, wait, what if you make the wrong decision and it won’t sell? What then?
There are many great bargains out there in real estate today. You can learn a few tips by using a flipping houses website as a resource. The information there will allow you to make a lot of extra cash through insider’s tips. It’s a fun and exciting way to invest wisely for the future.
With 1 or 2 million foreclosed homes on sale at this time, and at least 7.5 million more homeowners behind or near foreclosure, this is a market that is thriving for the person who has good credit and a willingness to put in some hard work. It’s going to take some cash and nerves of steel to get into house flipping. Here’s how it works. You buy a house in foreclosure at auction for around $50,000. Next, you invest about $20,000 into the home and renovate it.
You’ll need an excellent credit score and some cash for a down payment. Depending on your cash and the condition of the home you may need to take a second mortgage out on the property to afford the renovations.
These tips will help you to know what to look for in a potential home improvement:
1. Your location is important. You want to find a home in a desirable neighborhood. Research the areas and the area before you buy. Consider areas with plenty of job potential and a great community for kids to grow up.
2. Check for structural soundness in homes. If you can’t inspect, the inside, at least walk around the outside. If you’re not knowledgeable, take someone who is knowledgeable with you to inspect.
3. Good school districts are a must for families. If you find a house that you can flip in a location with a good school district you’re sure to have a sale.
4. Simple updates. Carpeting that is dated, wall paper that is dated and paint jobs that are dated are sure to be easy to flip. Just remove the old carpeting (many times you’ll find gorgeous hardwood floors underneath), choose newer paint jobs and remove old ugly wallpaper and you may have all of the renovations done that are required.
5. Houses that require rewiring, a new roof and other things done are going to be more of a major renovation. If you’re up to it, fine, if not, avoid those as they will increase the cost of repairs (although you will recoup the money in the sale).
6. You’re going to be spending a lot of time working on your renovation, so choose something near to where you already live. Otherwise, you’re going to spend a lot of time on your commute.
7. Kitchens are huge and very important. Pay attention to the kitchen and see what needs to be done. Always consider renovating the kitchen and the bathroom. Calculate what you’ll have to spend as well as what you can get for the house. Remember, things often wind up costing more than anticipated.
8. Before you buy the house make sure that the value of the home is below its value in the market. Then when you’re ready to flip it, the renovations will pay off. Buy the worst looking house in the best neighborhood and spruce it up and you’ll be able to recoup your investment.
9. Educate yourself on renovations and flipping houses. Remember, it takes a lot of hard work, and it’s not something that you’re going to accomplish overnight.
10. Understand the real estate market before you begin flipping houses. The better you understand it, the easier you’re going to find flipping houses.
11. Learn about home financing options and how to get it right. From mortgages to cash you’re going to want to understand what you’re doing.
12. Know how much house you can afford and how much you can afford to lose when you plan to buy and flip a house. There are many ways to learn to keep costs low including bartering, haggling with contractors and negotiation strategies.
Once you’ve learned how to spot a good deal, you’re going to be well on your way to flipping houses. Build up a network of landscapers, plumbers, electricians, and contractors and find ways to cut costs without cutting quality.
Build up relationships with all of the above and make sure that you know how correctly measure a house and size. This will help you to give rough estimates of what you’re going to need to have done and how much of it.
Know what will increase the value of the home the most. Different areas will have different things that will improve the house. Kitchens and bathrooms are key rooms to consider. Don’t forget storage, decks, green living technology and anything else that will enhance the potential sale of the home.
Get to know a few professional home flippers and ask if you can tag along on a few of their projects. As you get to know what they look for, you can begin to see what you need. If you ‘re helping them, they may even be willing to assist you as you go. Mentors are great for helping you get started in your home flipping venture.
The more you learn, the easier and quicker it will go. Home flipping works very well if you know what you’re doing and how to approach each task.