Flipping Houses | For Fun and Profit
Flipping Houses | The Steps
There are 6 major steps when it comes to flipping houses. In the following posts we will get into more detail on each of these steps, but here is a general outline of what you will need to do to complete a fix and flip.
- Find the deal – You will likely look through many deals before you find the right one. You will be looking for a house that has equity and is priced low. Remember in real estate investing, you make your money when you buy the house.
- Evaluate the deal – You must do your due diligence before you actually purchase the property. Make sure to look into the location and market, after repair value, cost for repairs, time for repairs, deed restrictions, liens, and title issues.
- Fund the deal – There are many ways to fund your purchase when flipping houses, but the most common ways are private money and hard money loans.
- Fix the house – When flipping houses you are not looking to tear it down to the studs and make it the nicest house in the neighborhood, you just want to get it up to par with the rest of the neighborhood. Typically carpet, caulk, paint, and landscaping will get you there.
- Market the house – You can choose to list the home with a REALTOR or sell the home ‘by owner.’ Each option has it’s own advantages and disadvantages so evaluate your selection carefully.
- Sell and profit - If you have done your job correctly your home will sell quickly and you can move onto your next deal.
Flipping Houses | Tips
In this video, Phill Grove provides you with some vital tips on flipping houses. Phill Grove has participated in more than 1,200 successful real estate transactions since 2004 and there is very little that he hasn’t experienced in the world of real estate.
Flipping Houses | Infographic
They say that pictures are worth a thousand words, so here’s a nice infographic on the 6 steps to flipping a house:
Flipping Houses | Conclusion
Flipping houses is one of the sexiest of all the real estate investing strategies, but don’t let the glamor and hype of the T.V. shows and other programs fool you. There is a lot of research and work involved with a fix and flip, and many beginning investors have quickly found themselves in over their heads on their first, second, and even tenth deal. My biggest advice for any investor looking to get into flipping houses is to educate yourself, find a deal with big margins (stay away from the low equity deals until you have more experience), and work with someone with experience if possible.
Under Creative Commons License: Attribution
Original Picture Source: http://www.flickr.com/photos/concrete_forms/523765240/