House flipping entails purchasing distressed properties, renovating them, and reselling them for a profit. You will typically find these properties via auctions, foreclosures or bank sales. If you’ve done your research and determined that you’re ready to be a house flipping investor, here are six simple steps on how to flip a house!
Step 1: Research for your real estate market
Before getting started, you need to spend some time checking the real estate market and choosing the right location. When choosing an area, be sure to research the housing demand, average property type, median home prices and neighborhood resources. It’s a good idea to work with a real estate agent with years of experience who can advise you throughout this buying process.
Step 2: Always have a budget for your house flip
Don’t wait until after you purchase a real estate property to make a budget. Know your price range for purchasing a home, making any repairs, completing renovation projects, and paying selling costs before you close the deal. It’s advisable to bring in a contractor to assess the property before you actually buy your first asset.
Step 3: Finance Your Project
Before you ever make an offer, make sure you have a lender who can fund your deal. Be certain that you are aware of what that funding entails. The ideal loan has a reasonable interest rate, low fees, and a minimal wait.
Step 4: Find the house to flip then buy it
Another challenging aspect of learning how to flip houses is learning how to find the right property. That means not only buying below market value, but with wide enough margins to cover your many expenses: renovation costs, realtor fees, and other overhead expenses. Also, you can’t just think about how much the house costs right now but you have to consider the potential resale value to ensure the highest profit margin.
Step 5: Renovation
Work with your contractor to finalize a timeline and schedule for the renovation. You’ll need to choose your contractors wisely, and monitor them carefully. Always leave extra room in the final estimate in case any unexpected issues arise, like additional cost of materials or project completion delay.
Step 6: Sell your fix-and-flip house
The last step in the house flipping procedure will be to list and sell the renovated property. At this time, time is of the essence because the longer that home sits on the market, the less of a profit you’ll make. Decide if you want to work with an agent and determine how to best market the property.
About First Funding Loans
First Funding Loans is a hard money lender located in Sarasota, FL that specializes in funding residential and commercial Fix & Flip, Construction, and Bridge Loans. Contact us today at +1 732-991-5216, email us at info@firstfunding.loans or visit our website https://www.firstfunding.loans/.
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