When it comes to flipping houses, many people assume they can just buy a house, fix it up, and immediately sell it for a higher price. While this is the general idea, there is much more to flipping houses than meets the eye, and there are many steps you should take before even making an offer on a house for sale. Our seasoned real estate investors at FLPPD are here to give you a brief rundown about how to set yourself up for success when embarking on your first, second, or hundredth house flip.
Do Market Research
As with most things, the first step in the house-flipping process is containing your excitement long enough to do a significant amount of research about the current state of the housing and rental markets in your area. While the internet is full of great resources, be wary of misleading sites and only trust experts with proper credentials and years of experience in the house-flipping business. Whether you spend hours sifting through articles online, reach out to a local real estate investor, or download the FLPPD house-flipping app, you will be much more informed and ready to move forward.
Make A Plan
Once you’ve gotten a good idea of current housing market rates and the basics of house flipping, make a solid game plan. Start by identifying your intentions and developing the step-by-step process by which you will execute them. Need the funds to get started? Speak with your real estate investor to figure out whether you need a loan, and what kind. Don’t know a thing about construction? Visit the property, arrange for an inspection, and hire someone with the credentials and experience necessary to perform repairs. No matter what your intentions are, nothing will be accomplished and you will only be disappointed if you stab in the dark.
Create A Budget
We’ll be the first ones to say that house flipping can quickly become an expensive endeavor if you don’t go about it the right way. And by that, we mean doing your research, making a plan of action, and creating a budget according to that plan — and sticking to it! By this, we don’t mean to say that you should be stingy; rather, you should sit down and outline exactly how much money you have to spend and what your priorities are. Through this process, you’ll be able to separate your needs from your wants, and identify how you’ll be able to get the most return on your investment.
Download The FLPPD App
Another great way to prepare for investing in real estate is to use all the resources that are available to you. As previously mentioned, this could be credible articles and studies online, a reputable real estate investor, or innovative house-flipping software like the FLPPD app, which allows you to analyze, compare, and list deals, as well as connect with real estate investors in your network. If you are ready to successfully flip houses, download the FLPPD house-flipping app today!