In the real estate business, there are various ways and strategies to compete in the game. However, you need to understand these strategies and know which one will give you the upper hand in real estate branding. So in this article, we will be tackling one of those strategies – the House Flipping.
House flipping is the process of buying, rehabilitating or renovating, and selling properties for profit. With a simple explanation as that, you’d think it’s an easy feat to do; but that’s not the case at all.
House flipping requires not just time and effort, but money and direction as well. Taking on this strategy is not for the faint of heart; especially if you’re not that familiar with how to carry this out. To avoid that, we will be giving you tips to successfully get the profit you deserve from flipping houses.
Real Estate Branding Tips for a Successful House Flipping
House flipping should be done at the right locations
Not every property that is offered to you or you found during your search is a good investment. Flipping houses settled in a stagnant market may most likely sit for a while after rehabilitation. As an agent, you should buy and invest in properties that are located in areas with high demands, this will increase the chances of your investment property to get bought.
Buy properties that are worth the value
Let me leave you a very important tip. NEVER ever buy properties above market value. The reason for this is that after buying a house, you will be spending thousands and thousands from your pocket for renovating the property again. The better way to choose which ones to buy is to make sure that the price is below market value with a property that’s not a run-down where you need to fix every single thing up.
Another way is to buy a short sale or REO property, where you have a chance to see what you're getting into.
Focus on functional improvements
Once you get your hands on the property, scan and check the area for any problems. This is very crucial since you will be selling it again and who wants to buy a house that does not even meet the basic standards of function and safety.
When we say functional improvements, check whether the electricity and water running; if there are any damaged plumbing; if there are holes in the ceiling. These kinds of issues must be addressed first if you want the house to sell.
If you have money to spare, then you can do some aesthetic improvements such as the interior designs for the kitchen or bathroom which are areas that leave more impression to buyers. But it goes to say that it is not really necessary to splurge all your cash if you can find low-cost but high-quality supplies for your renovation.
Know when to stop renovating
As mentioned in the previous tip, you can go all-out for a property that’s considered a run-down. But if you were able to buy a house that still works and looks grand, then there is no need to improve everything where it comes to a point of replacing the things that are still working and can be used by the next owner of the house. This will only lead you to price the property higher than its market value and it might not work out well in the end.
House flipping is one of the great ways to succeed as a real estate investor. Just follow these tips and make sure to count your money well and know where it is being invested on. With that, you can start flipping and selling homes to the market.