If you’ve decided to dabble in the real estate flipping world, you may wonder how to get started. Flipping can be a very profitable enterprise – if you know how to do it right. These tips will help you successfully turn a fixer-upper into a desirable property off of which you can make money.
Find the right area
One of the biggest challenges to flipping a property is finding the right location. The trick is to find a location that is up and coming, one that will be desirable to future buyers. Areas that are close to schools, shopping, etc. can be very desirable to families, whereas areas that are close to public transit and offer access to the downtown core and nightlife will attract young movers and shakers in the business world. Decide who you are trying to attract and look for an affordable property to flip in an area that would appeal to that demographic.
Find the right property
The next order of business is to find the right property to flip. What does that entail? Aside from choosing a property in the right location, you should always choose a property that is in a condition that lends itself to flipping. In other words, consider how much work is required to transform the property? Are you willing and able to invest the time and money necessary to do the renovations? Remember: It’s about being as frugal as you can in your renovations so you can make as much money on the sale as you can. If you have to hire a crew to do the renovations for you, you will have to either raise your asking price to make a profit, or be content to make less money on the sale.
Get the property inspected
Never, ever buy a property – to live in or to flip – without having an inspection. You may have to pay out a few hundred dollars for the inspection, but the inspector could find things that would make you reconsider spending money on the property. If the inspection turns up anything dangerous or very costly to fix, walk away from the property. There’s always another property on the horizon.
Keep your emotions in check
It can be very easy to get emotionally invested in a certain property, but if you are going to invest in real estate through flipping, it’s important to set your emotions aside. If the investment numbers don’t add up, if the property turns out to be a risk following the inspection, etc. don’t let your vision for the house and your emotional attachment to the property coerce you into making a deal you will financially regret. Similarly, once you do the renovations and put the house up for sale, don’t let your emotional attachment to the property (which can happen after you spend your blood, sweat and tears renovating it) keep you from letting the property go for a reasonable price.
Once you do your renovations and prepare the house for sale, don’t forget to list it with the right people! Websites such as redrealestate.ca are the ideal place to list your property to catch the attention of potential buyers.