You’ve all heard of it. There are many popular TV shows that showcase home flipping. But what really is it? And how do you do it successfully? Well, stay tuned. You’re about to find out.
So, what is it?
There’s two ways to approach home flipping. First is the time-old version of buying low selling high. Holding onto a home during a rising market can lead to large gains! Second, there’s the fix and flip. This is highly risky, but mainly due to people not correctly understanding how expensive the “fix” portion can be.
So, how do I do it?
Money Crashers wrote a list of 6 steps to follow in order to flip a home successfully:
- Get Educated
You need to have a strong understanding of the real estate market, and the entire process of purchasing and selling a home. Having a strong knowing of your personal financial situation is key. Additionally, you must know which home improvements will increase the home’s value.
- Find a Mentor
Whether it’s a trusted friend or a hired mentor, having someone who knows the business will be invalueable to a new flipper.
- Research Listing and Foreclosures
Foreclosures are a great place to find a good deal on a home. The only downside is that these homes need more work than a typical home.
- Make an Offer
It’s possibly that you will have strong competition if the home for sale is a good deal. Before making an offer, be sure to know the limits of what you can spend.
- Get Working
Gather permits, hire contractors, and set deadlines for the work that needs to be completed.
- Relist and Sell
Determine how and where you will be listing. Most flippers use a Realtor, they tend to have the most experience and knowledge of the markets.
There you have it! If you have the money and the time, get flipping!