Perhaps you have thought about buying a home and then reselling it for profit. If you live in the right area and your timing is right, you stand to make good money on this strategy. However, when you make a mistake it can not only cost you money, but make you sorry you ever entered this business. Here are some basic house flipping tips to help you avoid some common problems.
When you buy a property to resell it you are conducting a business transaction and you are a business person. Do not forget this and always try to keep partnerships or other situations on a business level at all times. The smart business person knows when you walk away from a deal and when to hire an appraiser to make sure that the price is right.
Start simple and you can learn as you go. It may not be a good idea to purchase a property that needs major renovation. Stick to houses that need painting and repairs that you can easily do. After that, you can graduate to more complex issues, as you will have more experience and a better understanding of the process of inspecting, making offers, buying, and selling.
Financing can be very tricky when you try to flip real estate. Good credit is essential and mortgages take away from your profits. For example, you want the lowest APR and at least twenty percent down. Otherwise you are facing an addition charge called private mortgage insurance. You also need to purchase homeowner's insurance and pay for closing.
Go ahead and check out properties even if the housing market has taken off. Many newbies think they must wait until things are slow before they can find a good deal. In reality, a great deal might be just around the corner and it matters little what the market is doing.
Stay near home. It makes little sense to spend a lot of money on fuel by driving miles out the way every time you visit the home. That extra time you spend traveling can be better spent at your property. After all, the quicker it is ready the sooner you can get paid.
If you are totally new to house flipping, take someone with experience with you on your first deal. Try not to get caught up in the excitement and keep a level head. Follow these simple house flipping tips and you will have a good chance for a successful flip.
When you buy a property to resell it you are conducting a business transaction and you are a business person. Do not forget this and always try to keep partnerships or other situations on a business level at all times. The smart business person knows when you walk away from a deal and when to hire an appraiser to make sure that the price is right.
Start simple and you can learn as you go. It may not be a good idea to purchase a property that needs major renovation. Stick to houses that need painting and repairs that you can easily do. After that, you can graduate to more complex issues, as you will have more experience and a better understanding of the process of inspecting, making offers, buying, and selling.
Financing can be very tricky when you try to flip real estate. Good credit is essential and mortgages take away from your profits. For example, you want the lowest APR and at least twenty percent down. Otherwise you are facing an addition charge called private mortgage insurance. You also need to purchase homeowner's insurance and pay for closing.
Go ahead and check out properties even if the housing market has taken off. Many newbies think they must wait until things are slow before they can find a good deal. In reality, a great deal might be just around the corner and it matters little what the market is doing.
Stay near home. It makes little sense to spend a lot of money on fuel by driving miles out the way every time you visit the home. That extra time you spend traveling can be better spent at your property. After all, the quicker it is ready the sooner you can get paid.
If you are totally new to house flipping, take someone with experience with you on your first deal. Try not to get caught up in the excitement and keep a level head. Follow these simple house flipping tips and you will have a good chance for a successful flip.
About the Author:
More about the author and other real estate related topics at this website. Read more here about house flipping basics and tips.
No comments:
Post a Comment