You might want to make money flipping property or you could have had a bad experience flipping property and want to learn where you went wrong. To begin with, I want you to know that I’m not of the mind that you should expect a large return on a flip if all you want to do is sign at closing. There’s much more to it than signing on the line.
However, there are techniques that some follow resulting in nice profits for themselves. The five keys to success are: (1) purchase the property, (2) shop for good deals, (3) don’t be afraid of doing some of the work yourself, (4) be reasonably handy, (4) do most of the work yourself.
Flipping Properties – Purchase the Property
Either, you need to be a real estate agent or work with one if you plan on flipping properties. If you don’t know the market in the Bradenton area, it’s hard to be in the right place at the right time. It’s essential to know if prices are increasing in the area and if the home’s price is consistent with the repairs needed. If you learn of a problem during the inspection, do you have an easy out option? This is necessary, because an inspection is crucial to knowing the condition of the home before you purchase it.
Shop for Good Deals
Next, you’ll want to set a budget when flipping properties. Not necessarily an iron clad budget, but a good starting point. Decide what you’ll purchase the home for and how much you want to get out of it. Then, work backwards. Are repairs needed, and how much can you set aside for those repairs? Be precise, create a list and stick to it. Shop for sales, closeouts, and substitutes.
Some home improvement stores place their closeout items out front early in the day. Stop by on the way to work. Keep a look out for yard sales, read the newspaper, and shop online. Buy quality, but resist the urge to purchase more expensive than necessary.
Don’t Be Afraid to Get Your Hands Dirty
If it needs to be remodeled, chances are good it needs a good cleaning. Cleaning companies are expensive and not necessary. You can do the scrubbing yourself. If the yard is a mess, which it likely is, get the right tools and do the work yourself (if necessary, rent the tools).
Quality labor is expensive and is best used sparingly. If you can’t do average repairs yourself or you don’t enjoy the work, find another hobby. When you need to bring in the professionals, profits will quickly go down the drain.
If you are considering flipping properties for profit, get in touch with me. I’d be happy to show you homes in the Bradenton area.