Flipping houses is becoming big business in the world of real estate investment. Unfortunately it takes all kinds of 'flippers' to make the world go around and some of them aren't nearly as conscientious as others. If you are going to get into the business of flipping proeprties and want to make a good living, and build a good reputation, for producing good quality results you must see to a few details throughout the process.
1) Do what needs to be done. Don't cut corners and create situations that will put the family that purchases your home in personal or financial risk. You want to create a safe home for the family or person that ultimately makes the purchase. You can not accomplish this by taking shortcuts and using crappy workmanship.
2) Avoid spending money that doesn't need to be spent. By this I mean don't spend money creating more work. Most investors do this by tackling additions, ripping out walls, or changing the floor plans. These kinds of changes are best left to the buyer unless they will significantly improve the asking price you can bring in on the house. Otherwise spend most of your money in the kitchens and bathrooms where they are more likely to bring in bigger profits.
3) If it ain't broke don't fix it. There is a lot of wisdom and experience in this old saying. There is no reason to go in and fix something that doesn't need to be fixed unless doing so will improve the value of the house to its buyers.
4) Always work within a budget. Most people set a budget when planning to flip houses but very few manage to work within that budget. This is the difference in making the profits you anticipated and putting the entire project at risk.
5) Create a home that the buyer will want to live in not the home that you will want to live in. You should never flip a house or design a flip according to your tastes; it is a recipe for disasters in more ways than one. First of all, it is unlikely that buyers will be able to afford it. Second, it will set you up for feelings of rejection if a potential buyer rejects any of the small details. Third, it often raises the price you must seek for the property in order to cover the increased costs of decorating and designing according to your taste. Finally, it most often leads to unnecessary expenses, and more money and time spent which defeats the purpose of a quick flip type of project.
6) Time is money. Don't forget this in all things. The more time it takes to do the flip the more money it's going to cost and the less money you are going to make. Plan small changes and improvements that have a big impact on the property and can be completed quickly to get the most out of your flip.
7) Never attempt a champagne flip unless you have a champagne budget to back it up. Just as flipping above the market is not a wise move it is also equally unwise to flip a house beneath your target market as well. Don't attempt to flip a property in an upper class neighborhood if you can't afford the upper class building supplies and appliances that are needed in order to make it a success.
While these aren't guarantees for success they are solid advice that will minimize the risks you face when flipping properties.
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