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Flipping Houses For Fun And For Profit
o you want to make more to give that up in equity. The
money in two or three nose is a powerful negotiating
months than most people tool. The worse a house smells,
make in a year? You can do just the lower you can get the price.
that by flipping houses. Even if it is cat poop or a kid
with a bed wetting problem whose
What Does it Mean to “Flip a smell permeates the house, since
House?” no one wants to move into a
House flipping is buying a house stinky house, the problem will
below market price, fixing it up have to be addressed.
and selling it for a significant
profit. The goal is to get in and You can find the right kind of
get out as fast as possible. You investment houses by looking into
want to avoid as much of the foreclosures, probate, or just
carrying costs as you can. driving through the neighborhood
Depending on the price of the and finding a house that appears
house, the monthly payments can unkempt and/or abandoned. It’s
eat up your capital rather really quite easy if you’re
quickly. willing to do the legwork.
Finding The Right House Buying The House
You can’t make a profit if you There are many ways to finance a
are paying retail for a house, so house, but the best way is owner
you need to find a house that financing, but getting a regular
quite obviously is in need of mortgage or working with a hard
repair. This makes it easier to money lender (since you won’t
negotiate with the seller since have the home very long anyway)
they weren’t willing to pay to is also a possibility. Dip into
keep the home maintained, it only your 401K or borrow from your
makes sense that they will have family. Since you are buying a
hard asset with real value, if houses, so it is important that
you’ve done your homework then you use materials that appeal to
you’ll be able to recoup your your potential buyer. For lower
money and it’s not a high risk end neighborhoods a Pergo floor
venture. will add a lot of value, while in
a higher end neighborhood you’ll
What to Fix have to put in a more expensive
When it comes to preparing the tile or hardwood floor in order
home for resale, you want to to sell the home.
spend your money so you are
getting the most bang for the Never reduce the bedroom count in
buck. While it’s tempting to a home. That is a sure money
decorate according to your loser. Conversely, adding another
personal tastes, this is not the bedroom to your home or upgrading
time to get emotionally involved the Master bedroom can add a lot
in a homes appeal. Make your of value and allow you to
decisions based on what will give increase your resale price.
you the best dollar return for
your investment in the particular Take the time to make the outside
neighborhood your house is in. of the home nice. While your
The conventional wisdom is to buy kitchen may be what sells the
the worst house in the best house, the curb appeal is what
neighborhood. I’ve yet to see any draws them in. Plant new sod, add
evidence that contradicts that flowers in appropriate areas and
advice. give the outside a splash of
color. Put in fences and walkways
Kitchens and bathrooms are the where it will add value. Create a
two top home areas where you will nice backyard living area by
get two to three times your adding a deck or patio. When the
investment back. Kitchens sell buyers come around and ooh and
ahh, you won’t be sorry that you of your project wisely
took the time. You’ll want to
start the outside landscaping and Selling the House
repair early on in the project so The sweetest feeling you can
it has time to grow and look nice imagine comes on the day you’ve
in time for your open house and completed all the work and you
subsequent sale. bring your realtor in to look at
the home and pull the comps on
Keeping to Your Timeline homes of comparative value in
One of the most critical things your neighborhood. After
you must do besides managing your calculating your purchase price,
materials budget, is to manage your remodeling costs, your
your labor costs by hiring carrying costs and your realtor’s
reliable, reputable contractors commission you should be able to
to do the work you can’t do or price the home at a price two to
don’t have time to do. Bad three percent below the market
contractors can put you far (because you’ll sell the home
behind schedule and end up much faster and likely get
costing you much more than they multiple offers) and still bring
were worth (especially if you in a minimum of $50,000 profit.
thought you got yourself a Sometimes I’ve seen the profits
bargain—you generally get what as high as $300,000 on a home
you pay for). For a $350,000 home that sold for over $1 million.
every month you hold on to that Not bad for two to three months
house your carrying cost of of work
$2,500 each month you are working
on a project could have helped And On To The Next
pay for getting the house done The decision to flip again often
quicker and with better quality depends on the level of pain one
workmanship. Manage this aspect experienced during the flip
versus the amount of profit and support that. Whatever you
gained on the home. Usually, the decide to do, the potential
profit easily offsets the hassle profits are quite high if you do
factor and most people decide to it right and don’t get
flip again. Some even choose to emotionally involved in your
make it their primary business purchase.
and build a team to facilitate
About the Author:
You can find more information about home flipping by logging onto www.buyitnflipit.com.
Read more articles by: Aaron Benson
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