An Ultimate Guide to Make Money Flipping Houses
There’s plenty of ways to make money in real estate. Although not a very popular option, flipping houses can bring you a real fortune if done correctly. Of course, it is easier said than done. It’s much more than just buying low and selling high. Considering the time and economic factors, along with other dimensions, it’s a quite bit of challenge to flip properties for profits. But then that doesn’t mean you can’t and shouldn’t do it. Provided you have the sufficient capital and decent market experience, you must definitely get to active trading of properties for big turnovers. Here’s how to get this started.
Research is the backbone of everything
Profitable real estate investments are all about doing intensive research religiously. This is even more important if you’re just a beginner and lacks enough market experience. Do a lot of research work. Spend your weeks and months in understanding the basics of real estates, reading the case studies and learning from the experience of other experts. Always keep in sync with the market news. Know how to read the charts, understand patterns, recognize new trendlines and remain informed all the time. The more you know about the market, the more efficient will your decisions be
Hire the right real estate company
This couldn’t be said enough times. Even when you’re a prodigy, this isn’t a DIY task. Flipping houses, in particular, is more hectic and stressful. Having experts by your side to guide you through thick&thin is essential—even more so if real estate investment isn’t your full-time gig. So, look around and hire a good company. Communicate and ensure both the sides are on the same ground. Tell them about the kind of portfolio you’re looking to build, listen to their suggestions, ask them questions. And most importantly, don’t follow them blindly. It the end, your success depends on your own decisions.
Buy the right, profitable houses
Even when the housing sector is booming, you cannot expect every kind of property to sell big. There are certain kinds that would deliver you bigger returns comparatively. So, be careful when purchasing properties. Aside from how big the house is and how good it looks, also factor the neighborhood, as well as its local economic and political aspects. Make sure the house is based in a flourishing area that it is seeing a consistent (and speedy) growth or urbanization. In addition, don’t just look for “cheap” houses. When it comes to flipping, getting high-value properties in developed areas is known to be much more profitable because their value, relatively, grow faster than those in “developing” and under-developed localities. So, don’t run away from real estate investor websites.
Comes time for renovation and staging
Once you have purchased a house, it’s time to make it grand or enhance its value. Fix all the breaks and bad. Make it new-like. Change the doors and make them look premium. Re-paint the wall to ensure they complement a uniform theme. Get rid of all the existing items and find their newer, better replacements. Once the house feels like a new one, move on to staging it better for the buyers. Place the furniture correct. Install the right lights and position them correctly. Add more decorative to make the indoor look appealing. In the end, you want to answer if this house is worth the amount that you’re demanding.
Know a thing or two about marketing
The best product sells only when customers know about it. The same thesis applies even here. Once your house is ready to sell, it’s time now to market it. Sure, your real estate company/consultant would do all to bring interested buyers; you, too, must take up a few DIY marketing measures to attract more prospects. You can list your properties on different online real estate platforms. You can advertise about it on Facebook and Instagram to reach a highly targeted demography. Also, if your marketing budget allows, you can get display ads on the local newspaper.
Be proactive—But deploy enough patience
Flipping houses profitably demands a proactive attitude. You need to be on your toes throughout in researching the market, communicating with professionals, partaking in networking events and spending time in technical analysis. But that said, on the other hand, you must also deploy enough of patience. Closing a successful deal would take time. The renovation will take weeks; finding the right buyers might take months. And often, you would be in the paranoia of losing all your money. Through these bumps, you must have the patience to continue on the journey and wait for the right opportunities.
In addition, of course, there are plenty of dos and don’ts. Like, the kind of houses you should buy, how you should deal with the legal end, the way you should find the right buyer, what you should do if your plans are failing and so forth. But all these ends are fairly subjective and depends on your individual case. And they aren’t also something that you, yourself, cannot handle. The key to making money flipping houses is starting, researching and getting the fundamental process correct. This guide will help you move in the right direction.