Are you ready for financial freedom? Ready to take charge of your own life?
Have the popular HGTV shows got you hooked on house flipping? They sure make it look easy, don’t they?
Americans are getting back into flipping houses, for a good reason.
But it’s really not as easy as TV shows make it out to be. If you’re interested in investing in your future, and you want to put in the work to flip houses and grow your income, this guide is for you.
If you’ve never flipped a house before, but you’re ready to get started, keep reading.
This is the ultimate guide to flipping houses for dummies. Keep reading for tips, tricks, advice, and maybe even a humble warning.
The Ultimate Guide to Flipping Houses for Dummies
In 2016, 6.1 percent of US home sales involved house flippers (people who bought a house betting on short-term price appreciation).
Maybe they fixed the house up a bit, slapped some new paint on there, maybe spruced up the yard for some curb appeal and stuck a “for sale” sign right back in the yard where it had been just a few short months prior.
The practice of flipping houses was pretty common around 2006, prior the economic recession. But it’s catching back on.
Cities that were hit hard by foreclosures are now seeing a major comeback of house flipping. Cities like Las Vegas, Tampa, Fresno, Memphis, and Atlanta are experiencing record breaking highs.
House flippers can even provide a valued service to their communities by making improvements to local homes that buyers just don’t have time for.
Getting Started Flipping Houses for Dummies
These are the steps you need to know before getting started flipping houses.
Take a look at your finances.
Flipping houses is a big decision, a business decision, and it should be taken seriously.
Are you in a financially secure spot in your life that you could even take on a project as big as buying, renovating, and flipping a house?
Are you ready to take on the risk? You need a decent amount of money stashed in order to guy the house in the first place, and renovations certainly aren’t cheap.
If you plan to take on a loan, are you OK with that risk? If you can’t sell the house as fast as you expected, are you able to support that loan after the expense of the renovation is all said and done?
Find the right house.
Don’t jump into a loan for the first house you find.
And don’t get too excited about a house you just love. This is a big decision and should be done sensibly.
Don’t make the mistake many others make, this project is a business decision, not just a hobby. Do plenty of research and take the time to learn from the pros.
Our guide, flipping houses for dummies, is here to help. Here are some tips you might want to consider before picking a house.
Location, location, location! It’s important.
Consider buying a smaller house that needs a little work done but is located in a great neighborhood.
Home buyers are usually looking in the area they want to live, before deciding on a house. Local attractions are important and the quality of the neighborhood is crucial especially if the buyer has a family.
Do your research and find out about the schools in the area. Are they schools parents would love to send their kids to? This plays a major factor in the decisions of the home buyer.
Some home buyers get themselves into a predicament by purchasing a house, investing a lot of money into fixing it up, then marketing the house, only to find that nobody wants to buy it simply because of the neighborhood it’s located in.
And try to buy on a nice and quiet street. A home on a busy street that’s loud and possibly dangerous to children and pets might lead to lower offers than you expected or no offer at all!
Don’t worry about curb appeal, yet.
Don’t be deterred by certain houses because they look ugly.
No curb appeal can be perfect for you. A little paint, some simple landscaping, maybe a new door could be easy ways to up the ticket price of your home.
Speaking of curb appeal, you might want to steer clear of anything too quirky or unique. You might love the style, but this is “flipping houses for dummies,” not finding your dream home.
Make sure and invest in a house that most anybody could love. Personality is great, quirky might not appeal to your ideal home buyer.
Check out the neighbors.
And check out the neighbors, if you can.
Do they keep their yards clean? Or do they have a very loud and mean looking dog chained up? Home buyers will be looking at these things, so you might want to check them out before investing your hard earned money.
How are you feeling about the guide on flipping houses for dummies, so far? Ready to jump in?
Well, hold your houses… er, horses…
Don’t overprice your project.
It’s easy to fall in love with this house.
After all, you picked it and you put a lot of work and hard earned money into it. It’s tempting to look at your finished project and think, “You can’t put a price on this beauty!”
But remember what you got into this for. Financial freedom. Controlling your own future. It’s tough to do that if you can’t get the house sold.
The flipping houses for dummies guide wouldn’t do you any good if you can’t sell the house after all this work.
Remember that your buyer is looking to pay what’s in their best interest. And they most likely didn’t see the project you started with. All they see is that beautiful kitchen. They don’t know what you went through to create that.
Research the general price point for the neighborhood and try to stay within that. Ready to start your new favorite project?
Check out our site and learn a little about us before you jump in. We can help!
Latest posts by Dave Brown (see all)
- Email Marketing Tips for Real Estate - April 1, 2018
- How to Become a Legendary Marketer - February 4, 2018
- Why Wholesaling Houses Is a Great Way to Investing In Real Estate - January 24, 2018