A Beginners Guide to Flipping a House

A Beginners Guide to Flipping a House

If you want to be successful at flipping houses, the first thing you have to do is learn real estate. You don’t have to get a real estate license but it could prove to be a very useful tool throughout your flipping career.

Step One: Research the Market

This process takes time. If you have access to a licensed agent, see if they will help you but either way, become very familiar with the real estate class ranking and be mindful of what in what areas are people selling and in what areas are they buying. This will help you learn how to spot a good deal.

Step Two: Secure Finances 

Cash is best. If you don’t have the capital on your own you can consider pooling with friends. If that’s not an option look into home equity line of credit (HELOC) and hard money loans. Mortgage products aren’t available on flips.

Step Three: Make Smart Investments

The homes you purchase for your flips are investments be thorough in choosing them. Consider all costs including repairs and closing costs. Be realistic about your own skills and what repairs you can realistically, safely and correctly do. Make sure you your time as well, especially if you have a loan attached to the flip. You want to get in and out so you’re not stuck paying a mortgage. 

Step Four: Buy

You have to take the leap some day. Meet with real estate agents at social networking events, talk shop—speak the language. This is a helpful way calm your nerves about making that first flip purchase and who knows, you might make a new friend.

Step Five: Sell for a Profit

Make sure you price competitively and within range. Hire a real estate agent to take the load—physical and emotional load— off of you. It’s normal to feel a little attached to your homes when you first start flipping but remember, this is a business—a very expensive one and the goal is to make money.

Make some friends and make some money.