Real estate reality shows are popular today. They make you look house flipping in a simple and easy way. However, you have to keep in mind that house flipping is more than just money. If it is your first time to flip a house, then this article is for you. Below is the beginner’s guide for house flipping success.
Assess your finances
For you to begin your house flipping project, you will need cash. It can come from your own pocket or can borrow from a lending institution. Know beforehand how much you are willing to spend for a particular property. If you don’t have ample money at hand, then you might want to consider partnering with other investors. Of course, you will have to split the profit.
Build a house flipping team
Even the do-it-yourself buff can’t handle the house flipping alone. As you know, there are a lot of things involve in a house flipping. If you want everything to get done efficiently, then you have to build your own flipping team. It includes wholesalers, builders, real estate agents, money lenders, and the likes. The team should consists of people who can make your flipping project a success.
Choose the best property
An undervalued property is the best although finding one can be very challenging. As a house flipper, you have to know where to look for properties sold way below its market value. Watch out for bandit signs as well as foreclosed properties as listed by the banks and private money lenders. Get in contact with real estate agents as they can offer a list of undervalued properties.
Do the calculation
As a house flipper, it is important for you to know how to do the math. You have to know the after repair value or ARV as this is the selling price of the house once the renovation is complete. Aside from that, you also need to know the maximum allowable offer or MAO, which refers to the highest allowable price you are willing to pay for the property.
Efficiency is important
Time is gold. The same thing is true when it comes to doing house flipping projects. If you want to make profit as soon as possible, then you have to do things efficiently. In other words, your flipping project should be handled in a timely manner without compromising the budget. House flipping can be quite difficult, especially for beginners like you. as you go along, you will be able to master the ins and outs of the business, which of course would yield to a much higher profit.
Check out this House Flipping Spreadsheet video from Charlie Jackson