In today’s world making money quickly and easily is what a lot of people spend their lives trying to achieve. Many people believe that buying, renovating, and selling a home fast (a process now commonly known as “flipping”) is the best way to make a quick buck. However, while flipping a home could possibly make you a lot of money in a short amount of time, it is no easy task. A lot of blood, sweat, and tears go into taking an old, unwanted ugly duckling of a property and turning it into a beautiful and desirable cash-cow. If you are interested in getting into the business of buying and selling homes fast then this is the guide for you!
What is Flipping?
It is the process whereby property investors buy a cheap property, put a lot of work into it to make it a more valuable and desirable asset, then resell it a few months down the line for a profit.
What Do You Need to Become a Flipper?
The first thing that you need is to understand that flipping homes is a risky business and requires a lot of hard-work and determination to be successful. Sometimes you will make a profit on selling a home fast, sometimes the profit will be really rather substantial. But other times you might lose money on the property – but don’t give up! Also, a positive outcome is more likely if you invest a lot of time and effort into making the property worth the increased price.
On the more practical side – there are a few things that you need to even consider getting into the industry. You will need a good credit rating and the capital to be able to buy your first home. It doesn’t have to be an exorbitant amount, start small. Once you make your first profitable sale you will be able to reinvest into buying a bigger or better property and hopefully make an even bigger profit then before.
Lastly, the most valuable asset you can have when it comes to being a flipper is knowledge. You need to have a good grasp on the property market and understand what buyers are looking for. Remember that the faster you sell the house the more money you will make. If you are new to the game, find a realtor that can help you come to terms with the market.
What Makes a Good Property to Flip?
Price, location, and potential – a cheap home in the right area with solid foundations and basics is what you are aiming for. You will want to invest in a cheap home so that after you have done all necessary renovations you will still make a decent profit when you sell it fast. The location of a home is crucial – it is the one asset that you can’t improve on. Look for a property in a good neighbourhood, close to schools and other draw cards like shopping centers and freeways. Just remember that different markets will be looking for different location specific requirements.
In Florida, the best options for flips will be short-sale or foreclosure properties. While they may be cheap you can often find good quality homes in good areas that won’t require too much work in order to make a nice profit.
If you are think that you have what it takes to sell a home fast and become a successful flipper, give us a call to help find you your first property!