There’s a lot more to house flipping than simply buying a house, prettying up a few things, and then selling it at a profit. It can be a pretty complicated process – and it’s not one you can go into unprepared. There are certain skills and elements you’ll require if you want to succeed.
Here are five things every house flipper needs to break into the market:
You might be tempted to go it alone, but I wouldn’t advise that. Having a team of experts on-hand who have knowledge about things you don’t know can be invaluable. Here are some people you might want to consider seeking out:
- A real estate agent. You might have a passing knowledge of real estate, but even that doesn’t compare with what a trained realtor might bring to the table.
- A lawyer. There can be some sticky laws and regulations around house flipping – a lawyer can help you navigate those laws.
- An accountant. Very few people enjoy doing taxes or crunching numbers. Having an accountant on retainer ensures that you’ll never need to.
- An insurance agent. Home insurance is important, especially for house flipping. If anything goes wrong, you’ll know you’re protected.
- A home inspector. Someone who regularly inspects homes for safety and code violations will very likely catch things you might miss – and they could be the difference between you going all-in on a terrible sale or saving your wallet.
- A title company. These organizations ensure that the title to a particular piece of real estate is legitimate and then offers title insurance, which protects the owner from lawsuits or claims related to property disputes. Not having one won’t necessarily break you, but having one with which you maintain a great relationship will make your life exponentially easier.
A Handyman (or Handymen)
You’re going to work with contractors when you flip houses. You’ll gain the most value if you have a good working relationship with those contractors. Of course, there’s something to be said for being handy yourself. You can save a great deal of money if you know how to do things like install a sink, paint a room, or fix a broken roof – to say nothing of how valuable the ability to step in and finish a last-minute job can be.
At the same time, you’ll also need vendors to do more complex plumbing, construction, and electrical work.
Skills and teammates aside, the most important tool at your disposal is an understanding of the real estate market in your area. Which locations are the best for buying and selling? Which neighborhoods are seeing a huge upturn in property values? What sort of sales have there been recently?
Time and Knowledge
Flipping a house requires a pretty huge time commitment. You need to put in the time to maintain the properties you buy – and you also need to put in the time to research factors such as:
- Your credit rating
- Your price range, and the level of profit you hope to make
- Other flippers and realtors in the area
- Vendors and their pricing
A property isn’t flipped overnight. Flipping is a long, involved, and difficult process – and you need patience if you’re going to succeed at it. Knowing when to sell is every bit as important as knowing when and where to buy.Knowing when to sell is every bit as important as knowing when and where to buy. Click To Tweet
And in that, patience is a virtue you cannot afford to neglect.
House flipping is tough, but also extremely rewarding. If you go in with the right knowledge and resources, you’ll do just fine. With a great team, relationships with some proven contractors, time, and skills – you can get out there and start flipping!
Guest Author Bio:
Armando Montelongo, Jr. is a real estate mogul, mentor, philanthropist, and speaker. As the CEO of Armando Montelongo Companies, he specializes in real estate investing and teaching his students how to strategically invest in residential and commercial real estate. Through these courses, he helps students positively transform their lives.