How to Start a House Flipping Business: Tips To Get Started
January 14, 2020 993 views
A Collection of Resources Related to Starting a House Flipping Business
If you’re considering starting a business flipping houses, then this page is for you. It offers a wide range of resources spanning over many sections giving you an overview of what to expect from this business. The articles are written by many experts on the topic of house flipping.
Before you get to the resources, here are a few brief points to keep in mind.
A house flipping business can be exciting and adventurous. You can make a lot of money flipping houses, or you can lose a lot of money. If you don’t have a lot of experience, then beware, it’s not a skill you can pick up without experience.
There are many variables involved that will determine your profit or loss.
The real estate market — You may buy a house to flip when the market is low, and sell when the market is high, which is profitable . . . or it can work the other way, where you can lose money.
The cost of hidden repairs — Repairs to the house you’re flipping are unclear because unless you start the renovation, you will not be able to see all the repairs needed.
The repairs — If you are doing the repairs yourself, you can save a lot of money; if you’re hiring someone for everything, you may be surprised about the cost.
Ownership time — From the time you purchase the house to the time you sell, it will cost you money in interest and, depending on your financial situation, will keep you from freeing up funds to purchase the next flip. If you hold on to the property too long, you’ll lose money, and if you sell too soon, you may lose money unless you get your price right away.
The profit is in the purchase — when you get a great deal purchasing a home, you’ll have a lot more room in your budget for unseen expenses.
Background checks — Make sure you do an extensive title search to make sure nothing comes up and surprises you. You also want to look into the area to make sure you are aware of issues such as new developments; for example, what if a new jail is coming to the area, which may scare off buyers.
Use the worst-case scenario — Plan for the worst. Doing this will keep you ahead of the game. (e.g., costs, a long time to sell, high repair costs, etc.)
Cost estimation — use about 25 percent more when estimating renovation cost because, as mentioned above, you don’t know the extent of the repair until you start your renovation
For more tips and insights, have a look at the collection of handpicked articles to follow, which will give you a strong overview of what’s involved in starting and running a business flipping houses.
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