If you read part one of this blog series, you already know the importance of picking the right houses and locations when making a living or supplemental income by flipping houses. Of course, there are many other pieces of advice to consider in order to ensure your success, so read on for more tips, and download the FLPPD app today to start investing smart!
Arrange For Tours & Home Inspections
This is where many house flippers fall through the cracks — no pun intended. Failing to see the house in person and arrange for a home inspection before financing the property is a huge mistake, as cracks in the foundation, faulty electric wiring, and other major issues might go under the radar. Trust us — the last thing you want when fixing and flipping a house is to invest thousands of dollars, hours of time, and tons of energy on home improvement, only for it to blow up in your face when you put it on the market.
To avoid becoming the victim of these problems or passing them along to your future home buyer, form connections with local real estate investors and have someone you trust accompany you on your tour. Not only will a seasoned real estate investor be able to identify issues that you might not have noticed, but they will also add a level of intimidation so that you are less likely to be cheated. After they have deemed the investment property worthy of flipping, arrange for a professional home inspection to identify any underlying issues. Home inspections typically only cost a few hundred dollars, making them a worthwhile precautionary step in the real estate investment process.
Choose The Best Financing Plans
Choosing the best financing plan is critical to your success as a new house flipper, as not everyone has the cash on hand to take on the project without financial help. The great thing about the real estate flipping business, however, is that flipping houses with no money is a possibility if you have the right loan, a good credit score, and a reliable source of income to make your loan payments.
This is where hard and private money lenders come in — it is their job to lend money to house flippers who are looking to fix and flip a house with a high after-renovation value (ARV). While there are other options available through conventional bank loans and real estate crowdfunding loans, money lenders are typically a better choice because their decision to provide house-flipping loans is based heavily on the ARV, rather than the investor’s experience, credit score, and other financial aspects.
Pick The Right Contractors
All too often, people who want to make a living flipping houses try to take on too much of the work themselves or hire cheap labor in an effort to save money. While this is understandable, it is incredibly important to hire experienced, reputable contractors to take aspects of the project that required skilled labor. After all, why sacrifice the integrity of the building by cutting corners on a project that you’ve invested so much time, energy, and money in from the start? Trust us when we say that it simply isn’t worth it to skimp on the actual renovation process, because like with the home inspection, this can (and most likely will) come back to bite you.
Download The FLPPD App
Now that you’ve done some research about how to make a living flipping houses, are you ready to get started? Download the FLPPD app today to network with other real estate investors, analyze deals, and start making smart investments.