Fixing and flipping houses has become a popular trend among investors looking to earn some extra income or build great wealth. Although, it is a lucrative way to increase your personal net worth, it is not an easy venture to undertake. Fixing and flipping houses requires patience, consistency, courage, and foresight. This article serves as a guide for investors who are looking at this form of investment to boost their earnings.
It’s a fact that investments are risky, but it doesn’t mean that you shouldn’t even try. For most people, fixing and flipping houses can be tricky and downright dreadful. Remember that if you want to see success, you have to overcome your fear of failing. This is done by educating yourself about this venture and talking and networking with investors, realtors, lenders, and attorneys who are actually doing it.
Contrary to popular belief, fixing and flipping is not done alone. It requires a dedicated team; hence, search for a competent and professional real estate lawyer and setup a corporation. You will also need to hire a professional accountant, insurance agent, qualified contractors, and real estate agents as well.
First, you need to build a solid and trustworthy relationship with like-minded people. Such as your local Real Estate Investors Association. Such as www.MetrolinaREIA.com. Most good deals will not come through MLS listings. To find the type of property you require drive neighborhoods you like and look for destressed properties. Tall grass, neglected house, gutters down, bad windows etc. Contact the owner and go for it.
Once you have selected your fixer upper property, compare its price to other fixer uppers that have been sold in the past in the neighborhood. Then call in your contractor and get the property evaluated to determine the repair costs.
After everything is deemed to be suitable, make an offer and purchase the fixer upper. You can fund the purchase through your own equity or by loaning from banks, investors, colleagues, friends or family.
Once the fixer upper has been bought, get final estimates and quotes on the repairs needed from contractors and subcontractors. Develop a strict management attitude and ensure that the costs do not rack up against your set budget. Also make sure the work is completed on time.
After the house, has been converted into an updated home, you can flip it or sell it either by yourself or through your real estate agent. Or best of all keep and rent it out.
John Wood is a member of Metrolina Real Estate Investors Association, which provides education, mentoring, and networking for real estate investing in the Charlotte region. For more information, visit www.MetrolinaREIA.org.