Flipping a house and selling it is rarely as easy as it seems. Popular television shows often make it look like a glamorous endeavor, rarely showing all of the groundwork that goes into the process throughout the way.
Many first-time house flippers quickly find themselves stuck when trying to navigate to their first sale. These individuals oftentimes overlook the essential elements of the process, such as money, knowledge, network, and determination.Here are some guidelines any beginner or expert can benefit from when it comes to closing a flipped house, with a clear-cut plan of action to repeat the process again in the future.
How to Close & Sustain a Flipped House
Flipping a house and selling it is rarely as easy as it seems. Popular television shows often make it look like a glamorous endeavor, rarely showing all of the groundwork that goes into the process throughout the way. Many first-time house flippers quickly find themselves stuck when trying to navigate to their first sale. These individuals oftentimes overlook the essential elements of the process, such as money, knowledge, network, and determination.
Here are some guidelines any beginner or expert can benefit from when it comes to closing a flipped house, with a clear-cut plan of action to repeat the process again in the future.
Pros of Flipping Houses
- Education on local economy: You’ll have many touchpoints along your house flipping journey, and will learn about local real estate and construction, among many others.
Cons of Flipping Houses
- Financials Risk: Paying a substantial amount of cash for flipping a house can be risky. There are some cases where homes are sold lower than market price due to unforeseen circumstances (nature disaster, etc.). Make sure you do your homework before you start flipping houses.
- Project & Contractor Stress: Dealing with contractors, juggling holding costs, and paying taxes involved with your flipped house can cause stress. Repeating these tasks, across multiple flipped homes, can takes its toll. Without proper knowledge going in, you can feel burnt out after your first house flip.
Expanding Your Networking
For many house flippers, meeting new people is part of their everyday job. The more familiar you get with local realtors, attorneys, contractors, insurance brokers, and other investors in your area the better. Networking is not just beneficial for current projects, but extremely useful for future flipped homes as well.
Avoiding House-Flipping Mistakes
The nuanced understandings associated with flipping houses aren’t acquired overnight. The skills necessary to successfully flip homes is often learned the hard way, by going through the process multiples times and refining that process as you go. However, we have compiled a few tips on things you’ll want to be sure to avoid before attempting to flip your first home.
- Set the budget from the start: To avoid budget overages and never-ending expenses, be sure to set a firm budget before any work begins. Once you have this fixed budget amount, you can work backward, ensuring all future expenses to the project will fit within the budget. Be sure to include a contingency as well so you are financially prepared for surprise repairs.
- Search for the best homes out there: Find the best home for your project. The success of your house flip is contingent upon the amount of focus and effort you put into selecting the property that will best match your goals for the overall flip. When doing your homework, focus on making sure that the location, price, and risk involved are all aligned with what you can reasonably handle.
- Request a hard money loan and make an offer: Learn how to get a hard money loan for a real estate house flipping investment. The loan can boost your budget capabilities and help you get your project kick-started.
Investing in house flipping requires time and knowledge. Taking a little extra time and attention to detail now can have you reaping the benefits down the road. Finding the right company to help invest in your house flipping project can help you finish your first project, and get closer to your next! DFW Hard Money Loans is available to you, and ready to be part of your path to success, Apply Today!