We’re always looking for ways to bring in more cash. Whether you need to pay off a few more bills or to increase your retirement fund, the more money you can bring in, typically the better off you will be. Besides your monthly income, do you have other ways you bring in cash?
Many individuals, business partners, and even couples will test their skills of flipping a house. When done correctly, you could walk away with a hefty lump sum of money. However, do it poorly and you’re looking at a considerable loss.
Does that mean you shouldn’t try it? Not necessarily. Although house flipping is not for everyone, it could be the other source of income you were looking for to pay off your last credit card. If this is something you’ve thought of doing, here are a few tips to make your first house flip successful.
Are You Ready?
First of all, you want to understand that flipping a house is not a simple task. It tends to require a lot of skill in renovations, or a decent amount of money upfront to hire someone to do the upgrades. If you are uncertain if you’ll be able to complete the flip on your own, or can’t afford to hire contractors to help, you may want to take another look at if house flipping is for you.
Find the Right Partner
If you’re looking to partner with someone to flip a house, don’t choose just anyone. You’ll be working closely with this person most likely seven days a week for as long as it takes to complete the renovations. Will you be able to stay civil with each other, or do you expect your relationship to fizzle out?
Do Some Reading First
So, you’ve decided you’re ready to flip a house and have found the right partner, is it time to dive in? Before you do that, consider reading up on house flipping from those who are successful in the business. They’ll be able to give you the ins and outs for you to make your first flip a successful, and profitable one.
Find a Property Fit For Your Level
If this is your first house flip, do you want to dive into one that will require basically a rebuild? Alternatively, would it be better to find a house already in decent shape that only needs a few upgrades? Biting off more than you can chew at the start could set you up for a disastrous flip and ultimately cost you more money in the end.
Finding the right property also should include the location of your potential flip. You want to find a balance of property value with how much you’re spending. A beautiful house in a rundown end of town may not sell for as much money as you want. Purchasing a home in a high-valued neighborhood could sell high, but it may cost you way more than budgeted to fix and meet the neighborhood standards.
Fix Quickly, Sell Quickly
Part of the art of flipping a house is to fix it up as quickly as possible (while maintaining quality), and then turning around and selling it right away. You could put in a ton of work to make the house look beautiful, but it won’t make you much money if you don’t sell it right away. The longer you hold on to the house, the more money it costs you.
When the time comes to sell the house, every small detail matters. From how you stage the home to even the smell of it, every detail can influence someone’s decision to make an offer. So, by setting it up in a way that allows potential clients to picture their family in the home, the better chances you have of closing a deal.