Tips and Tricks to Flipping Houses
Everyone always says that getting into real estate is a good business. I’ve been told this countless times and they always made it sound so easy. Well, those who said it had plenty of money to work with. However, you don’t have to be rich to get into flipping houses. I thought at first that I was going to have to save up a lot of money but that’s not the case. It’s always good to have a chunk in savings though, because you never know what type of deal you will run across. Anyways, I was very confused when first starting out because it feels overwhelming but my husband likes to work with his hands and felt that buying a house to flip would be a good investment. So, if you are looking to get into real estate as far as buying and selling goes, here are a few tips, tricks, and hacks to help get you started.
- Don’t rely on the online websites. The online websites rarely have the types of houses you want to buy for flipping purposes. Every once in a while, there are houses that are in danger of foreclosure being sold at bottom dollar which can sometimes be good buys. However, looking online is just not reliable as far as finding the best deals.
- Look for foreclosures. Foreclosures are often the best buys. HUD homes are good buys as well but can be a little bit more paperwork as far as the buying process goes.
- Call or talk in person with a realtor. Give a call to a local realtor and get a list of the foreclosed homes available on the market. Often times letting a realtor know what you’re looking for will bring you into more options you weren’t aware of.
- Check with the courthouse. Often times, really good deals on houses are done right on the courthouse steps in the form of an auction. These are more often cash buys but when a house is selling for only $10,000 and can sell for $100,000 if fixed up a bit, it’s definitely worth it. These auctions times and dates and the list of house going on auction are usually posted at the courthouse.
- Don’t buy a house that needs too much. It’s easy to get excited and look at a house and think it will be no big deal to fix all the issues. However, truly look at what will need to be fixed on the house and add up the minimum cost when you’re viewing it. Odds are, it will be more than that but at least you have an idea. Unless you live in a place like California where houses are a lot more expensive, you don’t want to be going much over $10,000 in repairs.
- Be careful. There are some auctions where you’re not able to view the house or its location before you buy. It’s easy to get bit in the butt on these. Although it’s not super often, it does happen so be prepared to be disappointed and have a lot of work to do.
- Try to do what you can yourself. It’s always cheaper to fix something if you don’t have to hire somebody. If you can do a superb job yourself on something, do it. It’s worth saving the money. Sometimes there are really basic tasks that can even be looked up on YouTube in order to learn how to do them. I’ve often been floored at how easy something was and was elated at saving so much money. Don’t be afraid to get involved!
- Don’t buy unless it’s worth it. When buying a house, you have to look at how much profit you can gain from it, realistically. Remember, that’s after the cost of repairs as well. If you buy a house that you only stand to gain $5,000 on, it’s not really worth the hassle.
- Don’t add unless it’s worth it. There are some things on a home that add value, there are some that take away, and then there are things that don’t make a difference in value at all. Research and learn the best things to focus on as far as repairs and renovations go. There’s no need to add things that won’t add to your profit. Remember, this is a business and you want to get as much profit as possible with spending as little as possible.
Flipping houses can be a really exciting business venture. It can even be a part-time thing on the side. I have a friend who buys a house and then takes his time fixing it up. Sometimes it will take him a year but when he finally sells it, he ends up making about a year’s wage or more. This allows him to do his regular job while making some on the side. As always, research as much as possible before getting into something that involves so much money.