Starter’s Guide to Flipping Homes for Profit
With many real estate shows highlighting the profit of flipping homes, HGTV’s Flip or Flop for example, starring our very own Tarek el Moussa, the process seems fun, easy and a quick way of to make money. In reality, it takes hard work, making mistakes, learning along the way and being frugal so that you walk away making a profit.
Assess Your Budget
You must take stock of your financial resources; how much you have to invest or whether you will have to find backer. Finding someone to do a Joint Venture with you may be a good way to start.
Begin Building Your Team
After finances, you need manpower, including people power to help you find, fix & flip the property. Your team will include brokers, contractors, architects, insurance specialist and lenders. Good thing Tarek is a one-stop shop!
Find a Good Property to Flip
Research Research Research! Become the area expert. That’s where you will find the hidden opportunities! This is where a great Real Estate agent comes in handy. They have already done the work for you!
Do the Math
You are in it to make a profit, right? The numbers have to make sense! After Repair Value (ARV) entails subtracting the purchase price, repairs and your carrying costs from the final potential sale price.
Micromanage the Project
Don’t leave things in the hands of the contractor! Supervise the repairs; treat it like it’s your own house! Do you really need to have gold covered faucets? Maybe, but often not!
Time is Money! And more so in this business. The longer you take with the project, the more you will pay!
Think Smart. Be passionate. Go for it. Look where it got Tarek! You can do it!
For more, please visit: SuccessPath “Flipping Houses” (http://successpatheducation.com/blog/category/flipping-houses/)