If you’ve ever thought of flipping a house and tunning a profit, it’s an entirely viable way to earn a living, and significant profits can be made from this process. However, property flipping isn’t as easy or straightforward as it’s sometimes made you be on TV shows; you need to have a good idea of what you’re doing to avoid unnecessary wastage and lost profits.
Start with research
Flipping a home for revenue and doing it successfully starts at the point of research. This is an important starting point because it can affect the return on investment – Candea Development Has advice for first-time buyers. You don’t want to enter an expensive property market since your chances of turning a profit will be considerably smaller. Find the balance between the right market and the right property before investing any of your money.
Set a budget
Flipping a property for profit might seem like a slightly unconventional way of earning a living, but that doesn’t mean that you aren’t in business – on the contrary, flipping properties is a business in itself and requires a business plan. This business plan does not have to be extensive – not unless you are obtaining a bank loan – but it does have to contain a budget, a timeline, and a project scope.
Confirm your financing
You don’t want to be in the position of having your property accepted, and then the funding isn’t available to take the project forward; that’s why you need to carefully plan your funding prior to making your offer and have it confirmed. Bridge loans and ones that also cover renovation costs are good options for flipping a property, but remember to pay close attention to fees and interest rates as these can influence your profits.
Network with contractors
The more information you have on the overall cost of the property flipping project, the more easily you can plan the project and turn it into a success. There’s good news; you don’t have to wait until you own the property before you start the process of contacting contractors and obtaining quotes. The sooner you do, the sooner you can get started with the planning process.
Find and buy
Finding a home to flip is also part of the research stage; it’s important to find the balance between market price and saleability. The property you decide on needs to be below market price – but it also needs to be cheap enough to account for expenses and closing costs. Again, an agent can help you find the right property if you’re struggling at this stage.
Fix and sell
Investment property lenders are much faster than lenders for standard homes, and although the process still takes time, you should be ready to develop the home much earlier. More experienced house flippers tend to go for properties that require a complete renovation to maximize profits, but at the start, some cosmetic changes are entirely appropriate. When the renovation begins, you’re up against the clock right away because the more time you spend on the project, the more money you lose to interest payments and contractors.
This is a collaborative post.