If you're looking to invest in real estate as a house flipper, you have the potential to earn high returns on your investment. However, successfully flipping homes is challenging. When you don't have experience with this type of investment, there's a good chance that you'll make mistakes. Here are five secret skills and tips that should allow you to reduce your mistakes and successfully flip homes.
Be Careful When Completing a Sizable Remodel
Taking on a sizable project can be an appealing opportunity. However, large projects also have more points of failure that could lead to substantial losses. Large remodels invariably take up a considerable amount of resources and time. Your contractors may also become frustrated with working on this type of project. Always be careful with sizable remodels. Try to plan everything out before making the investment to reduce the potential for costly mistakes.
Make Sure You Have Enough Funds
If you need to take out a loan to invest in a home, you'll need around 20-25% of the home's value for the down payment. Costs can add up quickly when repairing and upgrading a home, so make sure you have a contingency fund on hand to handle unexpected costs.
Search for Discounted Properties
While you can certainly find homes to purchase from standard real estate listings, these listings mainly consist of livable homes that are already in good condition. If you want to find discounted properties that can be remodeled and flipped for a decent profit, consider focusing on:
- Local auctions
- Wholesalers
- Foreclosure listings
Contact a Professional When Needed
Many house flippers will attempt to perform renovations and repairs on their own to keep costs down. Doing so, however, may result in you cutting corners. The types of projects that you might be able to perform include replacing existing carpet, installing drywall, painting walls, and removing wallpaper.
If you find that you're taking on a repair or renovation that's too complicated for you, don't hesitate to get in touch with a contractor. This option should be less expensive and time-consuming than attempting the renovations on your own.
Prioritize the Most Important Improvements
It's highly recommended that you prioritize the most important improvements when flipping a home. First, focus on essential repairs. If you miss out on repairing a malfunctioning HVAC system or other appliances, you could lose a sale.
You should also consider performing renovations that match the latest trends, which could involve installing an energy-efficient appliance or outfitting the home with a smart home system. The right changes can add a considerable amount of value to the property.
Flipping a home is never easy. These tips and suggestions should give you the skills you require to turn an old and worn-down property into a beautiful home that earns you high profits.
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We hope you found this information useful. We strive to be the best Realtors throughout Lake County and McHenry County by adding value to our clients and their families, because we understand life continues long after moving in or out of a home.
If you want the best possible experience with either selling your home or buying a home (or maybe both!), The Levicki Group is ready to help you plan your perfect time to EXIT. Contact us if we can assist with any of your home buying or home selling needs.