So You Want To Flip Houses
Here's what you need to know.
A lot of people have thrown around the idea of real-estate investing, I.E. Flipping homes, buying rentals etc., but don't know where to begin. (Maybe that's you). Well I'm here to solve that problem.
Here's a couple things you need lined up:
1. Tradesmen: Before doing a flip, especially, you need to have people you can count on to do work quickly and professionally. These people need to know your intention and be on the same page as you since time is of the essence when flipping houses
2. Source: You need to know someone, like an agent, contractor, or investor, that knows what to look for and can see an opportunity when one arises
3. Financing: Unless you can afford the home with cash, You need to have financing in place so that you can make a move quickly(deals don't last long). We have some great hard money lenders that do pretty fair loans, and there's a few programs available through lenders.
4. An agent: It is vital, if you want the most return possible, to have an agent that understands negotiating a fair deal, works nights and weekends, and has a deep understanding of the market so they can show you most accurately what your return is so the home sales and you net the MOST possible. An agent can also help with pointing out what upgrades are trending in your market with buyers.
5. Criteria: Have a criteria that you can live and die by. This means that once you find a property of interest, Make sure it fits all of your criteria so that your money is protected. Criteria can include, but isn't limited to, percentage off of market value you'll require (i.e. 15%), condition of the home you're looking for (how extensive of work are you prepared to have done), what types of property you are willing to take on, and what type of market you want to buy in (this will help determine time-frame).
Once you have these things in place, START HUNTING.
You need to be prepared to look at 15-20 homes, write on 4-5, just to potentially get 1 that fits your criteria.
Then you can execute your plan, sell the house, then at which point you'll get your return.
Final step: Repeat
Pro-tips: Educate yourself on the market and negotiating. Get good people to help you. Study the inventory until you can "know a good deal when you see one".