What it takes to Successfully Flip Houses for a Profit
Funding- From the purchase of the property to any renovations that may be needed, funding is a necessity. People entering the arena for the first time should consider properties that need as few renovations as possible. That will lower the total amount of money that is necessary for startup.
Connections- True success will come from business connections that can make the process much easier to digest. Connections should include plumbers, builders, flooring experts and nearby home improvements stores. Establishing a connection between contractors and local businesses helps obtain discounts. Connections often mean deeper discounts than usual. In such cases, the turnover profit will be much greater.
Attitude and Knowledge- The combination of knowledge and attitude can make or break someone who choses flipping houses as a financial venture. Knowledge about how to obtain the right property is essential. The property must be obtainable for a reasonable amount of money that would allow for a much higher asking price when it is sold. It also helps to know how to do as much of the work as possible in order to reduce the cost of contractors. Attitude plays a huge role in the negotiations process. Go in with a winning attitude and get winning results.
Understanding of the Real Estate Market- The real estate market is fickle at best. Timing is everything when it comes to flipping houses. It may be tempting to add amenities that are not necessary. The key to top profits is to know what will help raise the value of the property and what will not make much difference.
Fresh paint on the walls is a necessity and will help with the sale of the house. It is typically one of the lowest costs for home renovations there is. New countertops in the kitchen and bathrooms will also help raise the value of the home. Stainless steel appliances will do the same. Adding a pool to the backyard is not the same thing though. In fact, some people will not purchase a home with a pool on the property out of fear of high maintenance. Others may look at it as an attraction to purchase. It is not a surefire way to add value to the home and should not be considered.
Flipping is a great investment of money as long as the investor realizes how much work is involved in the process. The idea is to purchase a property that needs renovating and turn it over as quickly as possible into a sale. It involves an extensive amount of work in a very short period of time. Be up to the challenge prior to the purchase and keep the momentum going during the renovation and sales period for the highest profit possible.
MB McLane flip houses for a living and has being working at it for more than 5 years. You can also find other great articles written by her at http://homeflipping.net
EasyPublish this article: http://submityourarticle.com/articles/easypublish.php?art_id=261823