1.The term ‘Flipping’ is when you buy a property and make a profit on the sale of the property that you would like to flip therefore it is essential to consider costly repairs and upgrades. It can seem very appealing to investors to buy with the purpose of expanding or extending the property in order to make a good profit but the reality of such a decision can be very costly in as much as the house could be too expensive to sell or the work required will soon run into more than the purchase price of it which makes no sense at all as the common goal of flipping is to make money!
2. Inspection of the property is paramount and it is worth spending the money to have a trained inspector overlook the property you have in mind as they have a trained eye in this field and will be able to detect any errors which you may fail to notice.
This is a very important stage of the process and a decision that you cannot afford to miss out on.
It is also beneficial to allow 7 days for this process to take place as this will afford you more time to discover any lurking repairs or concerns which may arise and will alsogive you the opportunity to renegotiate the price or completely opt out of the agreement altogether.
3.Outsource the work: – It is imperative to collate s list of contractors and build good working relations, as an Investor time is of the essence and you do not have the time to be tending to tedious jobs or repairs to the property as your main purpose is to find the property and to delegate any work required to the contractors this way you can get started on your project straight away.
As most flips take 2-4 weeks this will give you the opportunity to meet deadlines and to have the property on the market in good time.
4. Market Value Rule: When flipping a property the rule is simple it is of yhe uttermost importance to place the house for sale at 1-2 percent below the market value as this decision can accelerate the sale of the property allowing you to action other projects. It is also important not too be over zealous with the purchase price as your sale is made at the purchase of the property.
Some investors will keep a property on the market for an extra 2 months or more to secure a profit. In making this decision you will actually lose money as the goal is to sell the property based on its competition and if the property is priced too high the buyer may be tempted to find a more suited house in the same price bracket.
5. Have an agent – As you are an investor DO NOT attempt to sell your own house as your time will be better suited finding properties to invest, however, if finances permit and you are able to afford your own in-house agent this can be advantageous as it allows your agent to take on the responsibilities of all the details required for the sale of the house.
However if your preference is to outsource an agent it would be beneficial to outsource from the list I suggested in the earlier stages.
You will be successful in flipping properties if you remember these few steps.
It is important to continue to research your niche market so that you are able to offer the best possible service for your buyers as the market is forever changing.
When you have a clearer understanding of the individuals involved in this field it will make purchasing properties far easier.
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