If you’re someone who has an interest in real estate and also in making money, then you’ve probably thought about getting into the business of flipping houses. After all, to purchase a home and then turn around and sell it for a profit can definitely be an attractive endeavor to get involved in.
However, nothing in life is as simple as A-B-C or 1-2-3. Virtually all things have fine print and stipulations to consider before taking on a particular task, including flipping homes. So, before you start to really put some time, effort and resources into it, we’ve provided you with a few do’s and don’ts to think about first:
Do know the guidelines. While there are some real estate rules that apply across the board, there are others that are relevant only to your state or province. You don’t want to take on a project like a home and sell it only to realize that you broke some of the laws surrounding house flipping where you live. Therefore, you need to do your research first.
Don’t buy a home without inspecting it first. As with any kind of investing, flipping houses comes with certain kinds of risks and if you don’t know what you’re getting yourself into, the risks can be pretty high. Some homes go for cheap due to things like plumbing, electrical and mold issues that could run you more than what you paid for the house itself. Be sure to have the house professionally inspected before buying it.
Do focus on where the house is located. Just about any successful real estate agent will tell you that one of the most important things to think about when purchasing a home (even if it’s just to sell it) is where it’s located. The most beautiful house in your city can still end up with a “For Sale” sign in the yard for months and months if it’s not in an ideal neighborhood. When you’re thinking about purchasing a house to sell, don’t just think about if prospective buyers will like the house, but also if they will find it to be in an attractive location.
Don’t be unrealistic about what you can afford to do. If you see a house that you like and you’re ready to contact a title agency about it, even if you know the “fixer upper issues” that it might have, take a moment to think about if you can actually afford to make the renovations. You don’t want to go into debt trying to flip a house over. Remember, the whole reason why you are thinking about doing it in the first place is so that you can ultimately make a profit.
Do consider foreclosed homes. With the real estate market still trying to bounce back from the many hits that it’s had over the past several years, there are some really nice homes that are foreclosed on, not because anything is wrong with the house but people simply could not afford to pay the mortgage. If you do your real estate homework, you could really come out on top with a foreclosed home. Definitely keep them in mind as a viable option.
1 Comment