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Flipping A House As A Newbie
Posted by Robert Scanny | Posted in Entrepreneur | Posted on 19-03-2009
Every week I meet would be real estate moguls who are bent on buying and selling properties for profit. The trend is called “house flipping” and it has become a nationwide wild fire amongst entrepreneurs and established business people alike. But there are many things to consider before you go off and start buying houses.
Here are some of the main considerations to take before going off to be the next real estate millionaire.
Buy A Cheap House, Invest A Pile Of Cash
It stands to reason that you are going to have to sink some money into your investment property. But just how much you put in will depend on several factors, the least of which is the current condition of the house. If you are buying a foreclosure, then consider that the reason you are getting the super good deal is because the bank does not want to invest the money needed to get theirs back. Instead, it is cheaper for them to sell you the house at a loss. That means you may have some major work to do.
Most normally, these major issues will involve plumbing, electrical or even structural problems that can cost thousands to fix. The good news is that even investing $30,000 in structural repairs is worth the profit in the end if you are smart.
Location Still Matters
That super low price you get on the house may be in part to the fact that it is in disrepair, but it also might be because of the fact that the neighborhood is in decline. Keep in mind that if the neighborhood is known as unsafe, then it won’t matter how cheap you sell the house, no one will want it. If you can, hold out for a super good deal in a super nice neighborhood. This is always a good investment.
Focus On These Elements
If you want a faster sale, then you definitely need to make sure the new homeowner is secure in the fact that he or she won’t have to make any major repairs any time soon. What I mean is that you should definitely give them a new furnace, central air system, water heater and roof. If these things are brand new, it will give your potential buyer piece of mind. These items will also help your house sell before the others in the neighborhood that don’t have these improvements.
Fresh Landscape The Outside
You will have a much better chance of selling your investment property if you provide a home warranty inspection and complete home package from a trusted company like American Home Shield. It shows confidence on your part as the seller if you are willing to back up all of your hard work with an insurance policy. Buyers will definitely use this as a reason to buy your house over others that don’t offer this perk.
These are just a few simple tips that will help you should you decide to become the next real estate millionaire. Who knows, maybe you’ll get your own TV show too!
