What You Need To Know About Flipping Houses
Flipping houses caught fire as a trend just after the housing bubble burst, but the continued popularity shows this might be a real estate practice that’s here to stay. While most people understand the basics of a housing flip, a lot of people aren’t quite sure how to get started with the process. If you’re interested in this opportunity, here are a few things to know before you dive in.
You Don’t Have Be Rich
Part of the reason this is such a widespread phenomenon is that people are constantly flipping houses without having to put up capital. Yes, money does need to be paid in order to buy the house, but because the goal is to flip it and resell so fast, you don’t need to cover the full cost. You only need to pay the down payment and the mortgage for the months you’re constructing, and it’s likely you’ll find an investor who’s willing to cover those fees in exchange for a percentage of what you make when it’s sold. If you play your cards right, you can flip for free.
The Houses Are Out There
Buying a house is a huge undertaking, and there’s a lot of competition for the best places on the market. However, that competition only gives you more incentive to flip houses that aren’t currently in great shape. A rundown house being sold for $200,000 can easily be bumped up to $300,000 if you make the right upgrades. You’re also going to have fewer competitors when you’re trying to buy a house that isn’t ready to be lived in yet.
Faster Is Better
You definitely want to take enough time to do the job well. Nevertheless, you don’t want to spend too much time perfecting details and paying interest on the loan you took out to buy the house. If you’re going to be successful flipping houses, you need to have a solid plan before you close on a property. Once you’re able to start working, you want to be in and out as fast as possible to minimize your expenses. If you take too long, you’ll break even or possibly lose money, and that’s not how this is supposed to work.
There are thousands of people having massive success flipping houses, and you don’t have to sit back and watch them have all the fun. Learn how the process works and make sure you have a solid plan, then start flipping and get in on the action.