Colli Real Estate

House Flipping Tips For Success

One of the best – and first – house flipping tips you need to know is to do your due diligence. It’s possible to make a fortune flipping houses, and it’s just as easy to lose your behind if you don’t know what you’re doing. When it comes to the fix and flip real estate game, there is much more than just rehabbing properties that need some renovation then selling them off to the next guy. So, to re-iterate: the first and best of all house flipping tips is to educate yourself.  

The Definition of “Flipping”

When you are flipping houses, you are purchasing a distressed property at a low price and reselling quickly to someone else at a substantial mark-up. While this is often done with run-down properties in need of renovation or “rehabbing,” properties like this are not the only game in town when it comes to fix and flip real estate transactions. Homes that are “for sale by owner” are great candidates, as the seller is usually very motivated. Foreclosed properties can also be purchased at a great discount; you can find these through banks and realty offices that specialize in such things.

House Flipping Tips Number 2: Tracking And Bagging Your Quarry

Basically, the best candidates for a profitable fix and flip real estate transaction are those on which you can make the biggest profits with the least amount of time and effort. As mentioned earlier, banks and mortgage companies are prime hunting grounds, but you may also find deals at real estate auctions. The only caveat here is that you are up against a lot of competition at an auction; bids get raised quickly, and you may not get the best deal.

House Flipping Tips Number 3: Financing

After you’ve done it a few times, you’ll probably wind up with enough cash on hand to buy properties outright. However, when starting out rehabbing properties or doing your first flip, you’ll probably need to get a short-term mortgage. The best terms can be had if you can make a down payment of at least 5%, and preferably ten.

Of course, it goes without saying that you absolutely must have a ready buyer – or you’ll be stuck with a second house that you cannot easily sell and cannot afford to keep. This alone may be the second most important of all house flipping tips. You can use Internet resources here, but it also doesn’t hurt to have a lot of good networking in the real world, either.

The Most Important of House Flipping Tips

Know the law. Because of past abuses by some unscrupulous individuals, some communities have passed ordinances to discourage the practice of flipping by requiring home buyers to remain in the home for a minimum length of time (usually between six months and a year).

About the Author

Wayne Hemrick writes about– house flipping tips.

Fix and flip financing

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Flipping Houses For Dummies $9.99 This book is designed for realty investors who want to profit from buying below market, making cosmetic improvements to add value, and then quickly reselling. But real estate agents and home buyers should also study it because of the valuable insights offered by a longtime, very successful real estate broker. On my scale of one to 10, this superb book rates an off-the-chart 12." — Robert Bruss You’ve probably seen TV shows like Flip This House and Flip That House , in which Real estate investors buy, renovate, and sell a house in a matter of weeks for tens of thousands of dollars in profit. They make flipping houses look so easy that you want to jump out of your recliner (during the next commercial, of course), run down the street, find a house for sale, flip it for a 50 percent profit, and run back home to continue watching the show. I, Ralph Roberts, have flipped hundreds of houses, and it’s never as easy as it looks on TV. People don’t generally line up at your front door begging you to buy their house for 30-50 percent below market value. Renovation expenses always exceed estimates. And you can’t always sell a house for what you think it’s worth. Flipping houses for a profit requires time, money, and what I like to call sticktoitism —dogged determination in the face of overwhelming uncertainty. Not just another house flipping book You can find plenty of books about flipping houses that claim "anyone can do it" and make flipping look easy and risk-free. Flipping Houses For Dummies takes a different approach—honesty. We don’t claim that flipping houses is "easy" or "simple" or "risk-free," because, quite frankly, it isn’t. Flipping Houses For Dummies reveals the risks and rewards of flipping properties; helps you determine whether you have the time, energy, cash, and other resources to be successful; and then conveys the expert knowledge that those who wish to pursue house flipping need in order to minimize risk and maximize potential profits in a very competitive market. Did you know? Most books on flipping houses gloss over the key factors that that make or break the novice house flipper. These are the very items we focus on in Flipping Houses For Dummies . For example, did you know: You should secure financing before you look at houses. As a flipper, you want dontwanners —houses that the owners obviously don’t want. You make your profit when you buy the property. You realize your profit when you sell. Always plan on earning at least 20 percent after your total investment—purchase price, repairs and renovations, real estate agent commissions, and holding costs (monthly mortgage payments, insurance, property taxes, and utilities). Working with a top-notch real estate agent can save you thousands of dollars more than what you pay in commissions. You should choose a limited geographical area to work and then become an expert on the houses and property

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