If you want to be a successful real estate investor you’ve got to practice the right habits and strategies. Flipping homes can be risky business but with these fundamentals you can mitigate the risk! Here are three key flipping fundamentals that can carry you through any project.
Timing Is Everything
Be smart about the timing of your flip. Study the market in the area you are looking to purchase in. Wait until there is low inventory of available homes on the market so you can increase your chances for a successful resale. Any good product tends to sell best when the competition is scarce.
Roll With the Punches
During a flip you may remove a floorboard or a wall and uncover termite damage to floor joists or studs. We have started a flip and found corroded/antiquated pipes that need to be replaced. We’ve seen a borrower learn that a previous addition to the home wasn’t permitted and had to be removed. The key is to be ready to redistribute funds to cover unexpected fixes like these so that your flip can stay on schedule and within budget. It may mean that you have to scale back on some high-end finishes or extravagant fixtures, but it can help protect your bottom line, which is of utmost importance!
Make Sure the Price Is Right
Once you’ve survived the twists, turns, and challenges that come along with flipping a house, next comes the all-important job of pricing your home to sell. Maintain a logical approach and remember to keep your emotions out of the process. Sure, you’ve removed walls and created an open concept and crafted a superior design. Your flip is a product. So study the comps in your area and don’t overprice your property! Doing so could cause your house to sit on the market. In doing so, you could create a stale listing and will still be paying the overhead cost for your property. If you price your flip competitively you could get multiple offers and receive over your asking price!
Stick to these fundamentals, and you’ll be setting yourself up for a successful flip! See below pictures of our most recent flip in the Charleston, South Carolina area.