We have all heard about flipping houses. We’ve seen the HGTV shows, we’ve heard the stories of someone buying a house and doing some home renovating — and then selling it for double the price. Flipping a house is a huge undertaking, though, and is not a task to attempt without proper preparation.
While the process might seem easy on television, it can be quite a challenge in real life, especially for your first flip. Check out these four tips to flipping a house for beginners:
Research the Real Estate Market
Before you invest a ton of money into this project, you want to know the real estate market. Are houses in this neighborhood selling? How much do similar houses sell for? These are all important questions to research before you actually sign off on a house to flip. For example, if you’re looking at real estate in Texas, you will want to research the various neighborhoods. For help with this, get in contact with an agent who knows Texas real estate well.
Get Your Finances in Order
Flipping a house is a huge financial undertaking, so it’s important you get your finances in order before embarking on this journey. If you can, start saving money as soon as possible so you can purchase the house in cash and don’t have to worry about paying interest. However, if this is not possible, there are plenty of other ways you can afford this project. If you don’t have enough money upfront, consider working with friends or getting a loan. If you’re interested in flipping a property in Duluth, you can get help from hard money lenders in Minnesota. A hard money loan is a short-term loan that can help with the funding that you need for the flip.
Choose a House with Minor Renovations
While you might go into this endeavor with a specific image of a home in your head, it’s important to remember that you might not have the funds to achieve that. You want to choose a house that needs minor renovations, to save you money and time. Maybe the floors need to be redone and the master bathroom needs new tiling. Don’t choose a home that needs to be completely restructured- that is just a nightmare waiting to happen. Create a budget for how much you want to spend on renovations and make sure you stay within your means.
Establish a Reliable Team
Flipping a home is not a one man job. You’re going to need to establish a team of reliable professionals to help you out along the way. You will need to find a real estate agent, home inspector, contractors, mortgage professional, insurance agent, and a real estate attorney on your team to get the job done. All of these professionals are crucial to the success of your flip.
Although flipping a house may seem like a quick project on television, it’s important to note that in reality, it’s not so easy. Flipping a house is a huge endeavor that requires a lot of planning. If you’re thinking of flipping your first home, make sure you’re aware of what it entails. It’s not something you can complete overnight, but with a good team and enough dedication, you can achieve your HGTV dreams.Category: Home