Do's & Don'ts

To House Flipping


 

 

Too often I run into good people who attempt to make money flipping a house. Unfortunately they don’t do enough research and planning but instead go into it blindly focusing only on the potential profit. Because they don’t have a plan established from the beginning, their emotions will usually take over and before you know it all potential for making a profit goes out the window. If your considering making an investment in house flipping, here are a few tips that may help you...

 

  • Most importantly, remember in real estate "you make  your money when you buy."  If you paid too much for the property up front, you can install gold toilet's and you still may not recover all you've invested. If you buy it right, you increase your chances for a profitable investment.

  • Don't just hire any contractor. Hire a contractor who has experience working with investors. A contractor who is used to working with investors will understand the importance of getting the project done in a timely manner.  When flipping a house, many times you will need to work with contractors that will be willing to work around other contractors. Most contractors want to work by themselves, they are used to coming into a project in phases, such as when building a new home. In this business however you don't have time to wait for the electrician to complete his work before you bring in the plumber and the same applies for the dry waller, the finishers, the painters and so on. To accomplish this task you will need an experienced project manager who has the abillity and connections to get diffrent contractors to work together. Do not under estimate this detail, not having this under control can be a very expensive lesson to learn.

  • When you place the home for sale do not sit on the property for too long. If your not getting any offers lower the price. Sell the house and move on to the next project.

  • Work with a real estate agent who has "Proven" experience in working with investors. They will all tell you they have experience working with investors so do your research & make sure you hire the right agent. He/she will guide you in the right direction for greatest success.