By David Glenn
For those who are interested in making a profit after buying a property, flipping houses is a common practice that works to improve and update a structure before selling your home for a higher value.
Many people find that the time and effort put into the property can be a challenge, but can have a large payoff. Flipping houses is now considered a practical way to supplement an income or one can make it the primary source of income. When starting the process of flipping a house, there are a few steps to take to ensure a successful project.
Hire a Few Professionals
When flipping a house, there will be several projects that need to be completed to increase the aesthetics and functionality of the home. If you're a handyman who is skilled with carpentry or plumbing, then you'll make more of a profit without consulting the services of professionals. Do as much of the work yourself while only using contractors when necessary. Although repairs and upgrades are crucial to flipping a house, it's important to avoid too much of an investment, which can render a small profit and not add any additional value to the home.
Besides using contractors who can work on the home, you'll also need to consult the services of a real estate agent, lawyer, inspector, title company, and a CPA. It will allow you to complete the process in a time-efficient manner without having to deal with complications that you're inexperienced with. If you're happy with each person's services, you can continue to use them on your next house flipping venture for a strong team.
Choose the Right Area
It's important to flip a house in an area that is flourishing and has a high employment rate to ensure that you'll attract plenty of buyers. Without jobs in the area, you likely won't find anyone who can afford to buy the home. You also want to research the value of other homes in the neighborhood, which will influence what the property can sell for after it's flipped. An agent can also assist you with determining the value after the upgrades are made.
You also want to look for homes that are on popular roads and don't have too much traffic nearby. The property should be close to highways, shopping centers, and schools for an area that is diverse and attractive to buyers.
Create an Exit Strategy
It can be exciting to find a house to flip, but it's important to create a few plans before you begin to remodel. In some cases, it may be difficult to sell the property and you can find yourself listing it on the market for several months due to the state of the market. Have at least two backup plans established to prevent loss on the property, which can include renting out the home or selling it to another investor if it doesn't sell. It's important to have at least two exit strategies established before purchasing the property.
Make Sure the Lawn Looks Great
When going into the process of flipping a house, you want to make sure that the grass is green and cut, trees and bushes are trimmed, and that there are no weeds. Make sure that you have all the necessary tools. When a prospective buyer looks at the yard they want to see a clean landscape, not work.
Stage before You Sell
It's important to dress the home up and show it off at its full potential to buyers who visit the property. Staging a home is one of the most important steps of flipping a home and requires furnishing it while it's listed on the market. Keep in mind that it should be more than a building, but a place where a family can grow. Use neutral paint on the walls for a style that appeals to the majority of buyers and avoid using personal photos or items in the space.
Use candles throughout each room, which can add a cozy effect and allow it to feel like a home. You can add extra warmth by using throws on the couch, using luxury hand towels in the bathrooms, and even offering homemade cookies as guests walk in.
David Glenn is a home improvement expert. He freelance writes about home maintenance and DIY home repair. He's also knowledgeable about topics like how to improve social presence and building a reputation online.
This post was originally published on RISMedia's blog, Housecall.
Reprinted with permission from RISMedia. ©2014. All rights reserved.