Are you looking into the exciting world of flipping houses for a profit? Flipping houses can provide a fun project and a ton of profit for those who are motivated enough.
But how do you get started?
If you’ve never flipped a house before, it might seem like an overwhelming journey. In reality, flipping a house is easier said than done, but that doesn’t mean that you shouldn’t go for it.
If you’re looking for a brief guide on flipping houses for beginners, you’re in the right place.
It won’t be easy, but once you know all of the tips and tricks, you’ll be well on your way to your first successful flip.
Know Your Market
Not every market is primed for house flipping.
Markets in which housing is already cheap may not yield you any profits unless you pick a house to flip that is desperately in need of repairs. On the other hand, some markets are super hot right now (and appear to be continuing on that path).
You’ll want to pick a housing market that will likely still be good in the time that it takes to flip a home.
When you’re a beginner, this can be difficult. How can you estimate what the future will bring? It might benefit you to talk with seasoned investors and keep track of housing trends so that you can set yourself on the right path.
Find the Right House
Not only is it important to find the right market, but you also need to find the right house for your flipping adventure.
Sometimes projects look easier than they are. When it comes to flipping houses for beginners, you might not want to pick a complete “fixer-upper” unless you know that you possess the skillset (or funds) to get the house in better selling condition in a reasonable amount of time.
When looking at homes to flip, look for the reasons that they’re being sold so cheaply. Some problems are easy to fix, others significantly less so.
If there’s structural damage, deep water damage, foundational problems, or fire damage, you may want to reflect and think about whether or not this is a house that you’re capable of fixing.
When you find a house in your price range, don’t forget to factor in the costs of any repairs or adjustments that you’re going to be making. A house that starts at $75,000 could end up being closer to $100,000 once your remodel is finished. Is that still in your budget?
Some houses are affordable for reasons that are outside of the realm of difficult fixes. You might get lucky and find a perfect house that could just use some updating and a cleaned-up yard.
Give Yourself Time
If you expect to get money right now from your investment, flipping houses might not be for you.
This is a long process. Buying a house isn’t immediate (though a real estate agent could help speed up the process) and fixing it up is going to take time, even if your fixes are largely surface-level.
On average, a flip will take at least 6 months. You may get out of it more quickly, but you might also end up taking an entire year.
Know your limitations and plan for the amount of time that a successful house flip will take.
If you see a house that is so incredibly cheap that you don’t want to miss it, but it’s also deeply in need of repairs (or even a complete rebuild) take a look at yourself and your abilities and budget and decide if this is a venture that you’re willing to take.
Are you capable of taking this cheap home that has fire damage and mold throughout the first level and turning it into a “better than new” home for the next family to live in?
Maybe, but it’s important to know your limits.
You have a budget and you’re only capable of so much, especially when you’re first starting. Make sure that the idea that you envision is possible before taking the plunge.
Have a Good Team
Whether you’re new to house flipping or you’re a seasoned fix-and-flipper, you probably can’t do it alone.
You’re going to need a team of people that can help you.
One of these team members is likely going to be a real estate agent or someone who can find and identify motivated sellers real estate leads.
Next, you’re going to need people to help you put work into the house. If you’re lucky, this is going to be a group of friends or family members that happen to be handy, but you may have to recruit outside of your social circle.
A good team is foundational to a successful house flip. You need to factor in any payment that is going to go towards your team members when you’re looking at your house flipping budget.
Flipping Houses for Beginners: How to Get Started
When you’re getting started with flipping houses, it’s easy to get in over your head. When it comes to flipping houses for beginners, it’s important to find your limitations and learn what is and isn’t possible on your house flipping journey.
Don’t bite off more than you can chew and don’t try to do it alone. A realistic house flip with a strong team will be quicker and more profitable than a DIY project with more problems than you can handle.
Investing in real estate can be fun and exciting, but don’t get ahead of yourself!
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