Did you know that flipping houses can help you earn some major income? The great part about flipping houses is that it can be fun, exciting, and help you launch yourself into a new career. However, there is a risk when it comes to flipping houses and before jumping into this career, you should be well versed in the real estate industry and know how to make money and not lose it.
Learn About The House Flipping Market
Before investing in any type of real estate or house flipping project, first you should go and research the areas you are looking to buy in. NEVER buy a home just because the price is extremely low, or looks to good to be true. Do you know why? Homes that are being sold for extremely low prices usually are in areas that are considered undesirable.
This means that you should never try investing in properties in these types of areas, because you probably won’t ever sell your new property for what it is actually worth.
Other House Flipping Tips You Should Know
As we said before, one of the best things you can do before deciding to embark on your house flipping journey is do your due diligence when it comes to research. There are many resources online that will provide you with a wealth of information about a particular location and the typical median earning income. This should definitely be your first focus before buying that first ‘golden egg’. You also should think about pricing out specific materials you’re thinking about using that will have an immediate impact on the value of your new investment property. Your goal should be focusing on quality materials and not cheap stuff that you think will keep your expenses low, because when you get your new investment property appraised, your appraiser will definitely have an idea of how much time and effort was actually spent doing these home upgrades. Check the prices of your counter tops, your flooring, your roofing materials, and even your windows.
Furthermore, when it comes to deciding on your exterior upgrades like what type of roofing material you’re going to use, or what type of new windows you are having installed, be sure that all of these products are marked energy efficient, because in real estate, energy efficient materials are often used as a selling point to drive up a property’s current value.
Resources For Real Estate Investing
Know Your Contractors Too!
This house flipping tip should be one you always remember, because it will save you tons of money long after your first successful project. Most likely, when you choose a home to invest in, you will have certain improvements that have to be made in order for you to obtain a positive return on your investment.
Maybe your house needs a new roof or a new kitchen? Most investors like yourself aren’t going to bother with doing the manual labor for these types of projects, because they acquire additional expertise, too. So what do you have to do? You have to hire contractors to perform this type of work and that means you need to become very knowledgeable when it comes to the average rates of these people and what kind of quality work they deliver.
When picking a contractor for your investment property, be sure to receive more than one quote to determine if one contractor is bidding too high, or if one is bidding too low. Low bids might seem very appealing, but generally a contractor who underbids a job usually means that they are very inexperienced and they might cut corners doing the job itself which means you won’t be getting the value that you are looking for. At the other end of the spectrum, if a contractor bids too high, then it usually means they are praying on your lack of expertise in that profession and you should definitely stay away from them. Picking the contractor who is in the middle is usually the best option because they will most likely be giving you the best value for your money.
Realistically, we are saving you from two kinds of house flipping pitfalls here. We are helping you learn to save money from contracts and to pick workers that can actually perform the work.
Not being savvy in these areas can wind up putting you into the red real quick and that’s not why you decided to get into this business, now is it? You decided to partake on this career because it can be extremely lucrative.
The bottom line is know your property, know your contractors, and know how to avoid a home if it is too good to be true. Stay tuned weekly for more house flipping advice or if you are ready to get started, then please go read our guide on how to get quick home financing!