We all love those home renovation shows, with people taking houses and turning them from boring and broken to beautiful and brilliant. If you feel confident that you could do that, and want to make a few bucks while you are at it, check out these tips on house flipping for beginners.
The Business Side Of Flipping Houses
– Do not let yourself get emotionally invested in the house you are flipping. House flipping is a risky way to make money, but it can be incredibly successful if you do it well. Having an emotional attachment to the house you are flipping gets in the way of that. You may be gun-shy about selling the home, or might ask for an unrealistic price as a result.
– Know what you want and go for it. Shopping around is good when you need a home, but not so much when you are flipping. It is a drain on your time — and time is money.
Equity
– Equity means the difference between the unpaid balance on the mortgage and the actual worth of the house.
– A word of advice on house flipping for beginners — You need to get used to doing the math. You need to be able to accurately judge how much equity there is in this project, including the work you will put into the home. No equity means no potential for a successful flip.
– Depending on the seller, you may be able to make equity easily. If the house is worth $150,000, but the seller is desperate, you may be able to buy for $130,000 and make $20,000 equity right off the bat.
Selling
– Buy low and sell high. Remember, you are trying to make money, not build your home; you do not need to settle and you definitely do not want to splurge.
– You can add some nice upgrades to the home on your own if the difference ends up in your favor. Making simple repairs and updates can add a nice sum to your resale value.
– You want to make sure you sell before the first mortgage payment is due to save even more money on this project. That usually means you have about 45 days. If this is not possible, you could still sell afterwards, but you would lose some equity.
Get A Hold Of Local Real Estate Professionals Now
If you have more questions about the process of buying or selling a house, or if you need assistance with a repair or renovation, TalkLocal can connect you with the local professionals who can help you at a budget of your choosing.
Tags: house flipping, real estate
