Flipping houses is a great way to make money and improve the overall character and quality of the neighborhoods that you live in. You make quality housing more accessible to families near you since they won’t have to secure a mortgage and then have to try to manage all the renovation projects on their own (including their own dime). On top of that, of course, you can make a great wage and eventually start to build up a renting portfolio that will give you that much-needed passive income.
Know Your Financing Options
One of the biggest barriers to starting a house-flipping business is the fact that it is hard to finance your own home, much less a second one. While many house flippers just starting out move into the property they are managing while they renovate it, this still does not mean that you will automatically have the funds or means to buy a fixer-upper, pay for the renovations, and then hold it for however long it took to sell.
That is why you need to be fully aware of your financing options. There are many great financing solutions out there, particularly for those who are interested in short-term loans that cover the cost of the property and renovations. These short-term loans can help you finance a fast turnover, though there are risks. Always compare the risks and even speak to a financial advisor so that you can choose the best option for you.
Finding Contractors and Sub Contractors That You Trust
Even if you are a professional builder, there is no way that any single person can fully renovate an entire home on their own. Even becoming a professional certified tiler takes four years of training. That’s why, before you get started with any project, you need to have a team that you trust. Having one contractor that has worked with his team of sub-contractors for years and can provide proof of their high standard of results can do wonders for your business, long before it begins.
Choosing the Right Property
When it comes to flipping properties, being aware of all their issues is the most important step. If you are planning on knocking down a property to build a new one, then the quality of the previous home won’t be too big of an issue. If, on the other hand, you are simply planning on renovating it, then you need to invest in an in-depth survey so that you know for a fact what to expect. Cosmetic issues are generally fast and, in comparison, affordable to fix. Foundation issues, however, could end up taking your entire renovating budget.
When it comes to choosing the right property, especially as a first-time flipper, you will want a property that is solidly built but one that needs a desperate refresh to make it feel comfortable and look stunning.
The neighborhood will also matter. If you want almost an instant guarantee that you will earn a healthy return, make sure that people are actively seeking out and buying properties in your area.