The simplified definition of a home move is buying a property with the intention of improving it and reselling it quickly for a profit, doing this has become quite popular in recent years. The properties involved with these twists can for the most part be divided into two groups. The first group are houses that primarily require cosmetic upgrades and upgrades, such as cleaning, painting, new carpet, appliance and fixture upgrades, etc.
The second group of houses are those that need a major reform; This group may involve such things as moving walls, new drywall, windows, doors, kitchen cabinets, new roof, landscaping improvements, etc. This type of project should not be attempted for the first time without a good working knowledge of what it entails. The desired end result with either group should be a job well done with profit, when done correctly and with the right options, the profit can be very good.
Turning guidelines
1. Financing
You need to know in advance where you plan to raise funds so that you can move quickly when you find the right property. Your credit is an important factor here to help you get the best loans and rates, but it’s not the only factor, so don’t let that stop you, just work to improve it. There are many financing possibilities, so explore your options, search for potential lenders, and get prequalified from up to three lenders. Another option to consider is starting with the home you currently have as your first move.
2. Know your market
Get acquainted with the local real estate market, what people are looking for in a house, what kind of features, what size, how many bedrooms and bathrooms, is there a shortage of these types of houses, what houses like this are sold for, what do these houses sell for Quick? Knowing and understanding the answers to these questions is critical.
3. House selection
Knowing and understanding your local market makes selecting homes so much easier because you know what to look for and can recognize bargains when you see them. If the house is in the correct area, making a selection basically comes down to four questions; What can the house be bought for? What are your repair estimates? What can you sell the house for when it’s finished? Does this leave a profit?
4. Rent
People look for nice houses in safe and good neighborhoods, when looking for houses you should look for the reasons why people would be attracted to the neighborhood. The home must be located in an area that has been and will continue to be appreciated. If this is a house that you envision for a young family, where are the schools located? Will your completed project improve the value of the neighborhoods?
5. Inspection
After finding what appears to be a promising change, a thorough home inspection should be performed, depending on your experience and comfort level in doing this type of thing, it may be a good idea to have a professional perform a home inspection. . Hiring an inspector will cost a few hundred dollars, but it can save you a lot of money by avoiding costly unexpected repairs such as a bad roof, structural problems, and termite damage.
6. Costs of materials and ideas
It is important to know and understand the improvement costs that can be incurred when analyzing properties so that you can make quick and fairly accurate estimates. To help you with this, I would recommend walking through home improvement stores often and looking at everything from building materials to paint, fixtures, appliances, tile, carpet, lighting, etc. These tutorials can also help you fill your head with ideas.
7. Choice of improvements
It is important to get the most out of the money so that you can achieve the best return, something that can help you with this is to examine the houses that are selling quickly and see what these houses had that made them attractive to drive a quick sale. What kinds of features did these houses have, such as floors, paint colors, appliances, lighting, fixtures, and curb appeal? What was the sale price relative to similar homes recently sold in the same area? Observing these points will help you recognize the values of various characteristics that attract people and help you make the right decisions.
8. Planning / budget
It is very important to develop a complete plan with each turn, the initial one begins with approximate numbers that include costs and purchase fees, an estimate of improvement costs and a projected cost of sale. The actual work plan takes into account a detailed list of what you plan to do and the cost figures for each of the items, the plan should also include a timeline from start to finish, be sure to include a little time and Extra money. for the unexpected, time is money! Finally, the plan must have a projected sales price.
9. Labor / labor costs
It’s best to know how to do most of your planned work or at least a good portion of the work to get started and then expand your skills from there. If you are unable to perform part of the required work, you will need to seek competent and reliable help with this. I advise you here to be very careful in your choices, make sure you know the person you select well, or else check the references carefully. You don’t want a person who starts working and then disappears for a week or more.
10. The sale
From the first day of your flip you should consider your flip for sale because it is possible for an interested person to walk, so you should have a good idea of your expected sale price. Within a couple of weeks of the completion of your project, you should be thinking about the sale, there are several options at this stage to consider, but keep in mind that a typical realtor will charge 6 percent of the sales price. To save a ton of money I would recommend looking for a flat rate real estate agent, this will give you the benefits of having a real estate agent and having your home listed on your local MLS “multiple listing service”.
Flipping and fixing houses can be a lot of fun, exciting, and quite profitable for those who enjoy this type of work and the challenge it offers. The above guidelines are meant to be of assistance, please note that they are highlights and far from inclusive of everything that is involved.
In addition, I would like to comment that the real estate market, like everything, has an ascending and descending cycle. Currently, the housing market when looking at the national level has been in a slowdown, “an excess abundance of new homes in certain areas”, this scares some people, but it does not mean that there is no money to be made on investment, Opportunities still abound and I always will. A slower market just requires more caution, good research, careful planning, and go for it! The housing market in many parts of the country is still very active and growing apace, keep in mind that this is supply and demand, guideline number two.
