When it comes to making a profit in the business of flipping houses and other real estate investments you will find all kinds of do's and don'ts along the way. The truth is that these are extremely useful whether this is your very first flip or you have been flipping properties for 35 years.In fact you might just find out that you can learn something by reading like this, even if you've been flipping houses for 40 years and have completed many successful flips.
1) Don't forget to check out the neighborhood before you buy. You will want to make sure that the property you are considering is a good fit for the neighborhood. You should also make sure the plan you have drawn out for the property will match with the other neighborhood properties in order to make a quicker sale.
2) Don't blow your budget without good reason. Your budget is what you used to determine whether or not the house would be a profitable venture. If you blow your budget and cannot recover the extra money you've spent in the selling price on the house you will have seriously cut into your profits if not eliminated them all together. The goal in property flipping is to get in and out quickly and spend as little money as possible in order to make as much money as possible.
3) Don't forget to set daily goals and hold yourself accountable to those goals. If you don't reach your goals for the day it can set the entire project back by as much as a month depending on the goals and what has to be rearranged as a result. Stick to your timeline and your daily schedule in order to avoid potentially costly delays in time and money.
4) Don't neglect the exterior. Curb appeal is what brings buyers into the house. If you spend all your money, time, and effort making improvements to the interior of the home you will have very little left to make the outside appealing to potential buyers. A homebuyer is in the market for the entire package. A home that looks run down on the exterior leaves the lasting impression of being neglected on the inside and many buyers will never walk inside the house, if the outside looks bad.
5) Don't spend money you don't need to spend. While it would be great to put in granite countertops and gourmet kitchens into every home it isn't always practical and this is often money that will not be recovered, particularly in homes that are in marginal neighborhoods. If you want to get the most for your money avoid costly expenses that aren't exactly necessary for the successful completion of the flip. Resurface bathroom fixtures rather than replacing them if possible and use new cabinet doors or hardware rather than adding new cabinets all together to cut down on expenses. In other words, salvage what you can, fix what needs to be fixed, paint what you can, and add a few cosmetic touches before moving on.
The market for real estate is a very fickle market. Avoid spending too much time and money on a house that isn't going to recover those extra touches and expenses. Instead hold onto those ideas for higher end flips once you have a few successful flips under your belt.
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