The Tricks Behind the Fix-and-Flip Real Estate Game
Thanks to reality television shows, house-flipping has seen a surge in popularity in recent years. Though Chip and Joanna Gaines make the fix and flip look easy, many newcomers struggle to find success when they try it out for themselves. Fixing and flipping houses is hard, and pocketing a hefty profit is even harder. But there are a few tricks that can help along the way.
It’s All About Who You Know
You need multiple reliable contractors you can call on to do the fixing. Many people think one contractor is enough, or worse, they believe they can DIY it all themselves without professional help. But time is of the essence when you are flipping houses. What will you do if the only contractor you know is booked for weeks? This is why you need several contractors you can depend on. The more help you have on hand, the more quickly things can be finished.
You also need a great local realtor. A good, experienced real estate agent knows the area inside and out. They can direct you to properties that would be good prospects for fixing and flipping, and they may share new listings with you before they hit the market. They know what home features, types of houses, and parts of town sell best. They can also predict how long a property should take to sell, and how much it may sell for once the flip is completed.
Additionally, it is necessary to find a knowledgeable, trustworthy lender. Unless you have cash to buy your project houses outright, you will need to borrow money. You need a lender who is familiar with fix and flip loans and hard money loans, as these are different from a traditional home mortgage.
Know the Market
A realtor is an excellent resource, but you should also do your own research and make an effort to keep up with market trends. This is especially important if you plan to purchase and renovate houses in different locations that your realtor may not be familiar with. Find out what buyers are looking for, figure out the best of times of year to buy and sell houses in the area, and use this information to guide your projects.
Work Hard and Be Patient
You won’t get rich overnight flipping houses. Every fix and flip project will have unexpected problems that pop up and delay progress. Houses may take longer than expected to sell. Buyers may haggle and reduce your profit. To make good money doing this, you must work hard, know your stuff, forge the right connections, and persevere. It can be done, and it can be quite rewarding.