Five Facts About Flipping Houses

1.  Your money is made when you buy the house, not sell, when flipping houses.  Many times people buy a house with the intensions of making a huge profit, only to find out they could not make any money.  After all of the renovations, there was not profit because the purchase price of the house was too high.

2.  Make sure to get an inspection, especially when you are flipping houses. By spending a few hundred dollars, you can save yourself thousands in expenses.  Things such as the foundation, pest problems (termites), wood rot, electrical issues, and plumbing can cost you big money to repair.  By getting a full inspection, you can rest assured that you know what is wrong with property before it is too late.

3.  Don’t do the work yourself.  When you are flipping houses you should hire a contractor or several sub-contractors, and have the work done quickly.  Your goal in flipping houses is to finish ASAP, so you want to get it on the market and get it sold fast.  By doing the work yourself, it takes too long and it is very exhausting.  Your goal should be to have the house renovated in less than 30 days.  This is one of the biggest mistakes that I see new investors make!

4.  Price the property 5-10% percent below market value, if you are retailing the property.  Your goal is to buy and sell a property as quickly as possible, ensuring that you move on to the next deal. If you purchase a house and try to sell it at top dollar just to make a couple of extra thousand on your flip and end up holding it for 6 months or longer, you are losing money.  Get your house on the market at a price that will blow your competition away, and you will sell it regardless of market conditions.

5.  It’s okay to use a real estate agent when flipping houses, especially if it’s a retail sale.  Do not try to sell the property alone, unless it’s a wholesale deal. In that case you would just use your database of cash buyers. Harness the power the power of the MLS system!

I hope this article has been helpful in showing you the basic needs of flipping houses.  If you are willing to study and learn, you will make money.  Do your homework before purchasing a property to insure you make a profit on your deal.  Then, go out and make it happen!