Have you ever thought about quitting your job, becoming your own boss, and working from home? If so, you’re not alone.
In fact, according to a upwork.com study, they have found that 70% of millennials will quit work if there’s no option to work from home. And with the rise of digital technologies, it’s easier than ever to start your own business.
One of the most popular home-based businesses is flipping houses. Flipping houses is when you purchase a property, make improvements, and then sell it for a profit. It’s a great business for people who are handy, have a flair for design, and enjoy working with their hands.
If you’re thinking about starting a house flipping business, here are 7 steps you need to take for success:
- What Type of Flipper do You Want to Be
The first step to success is deciding what type of flipper you want to be. Do you want to be a wholesale flipper, retail flipper, or rehabber?
Wholesale flippers buy properties below market value. They make minimal repairs and then sell the properties “as is” to other investors.
Retail flippers also buy properties below market value. They will also make necessary repairs like mold damage repair and renovation. Eventually, sell the property to an end user (e.g., a family looking for a new home).
Rehabbers buy properties that need major repairs. Renovate them and then sell the property to either an investor or end user.
- Research and Find the Right Property
Once you know what type of flipper you want to be, you can start looking for properties. The key to success is finding a property that is below market value. There are many ways to find these types of properties, such as:
MLS
You can search the MLS (Multiple Listing Service). This is for properties that are new to the market or have been on the market for a while and have not sold.
FSBO
You can also search for For Sale By Owner (FSBO) properties. These are properties that are being sold by the owner without the help of a real estate agent.
Auctions
Another option is to search for properties that are being sold at auction. These are usually properties that have been foreclosed on or are otherwise in distress.
Once you find a property that you’re interested in, you’ll need to do your due diligence to make sure it’s a good deal. This includes getting a home inspection, ordering a title report, and having the property appraised.
- Get Funding for Flipping
Once you’ve found houses to flip that you want to buy, you need to get funding. There are many ways to finance a house flip, such as:
Hard Money Loans
Hard money loans are loans that are backed by real estate. This type of loan is typically used for investment properties. It also has a shorter loan term than a traditional mortgage.
Private Money Loans
Private money loans are loans that are provided by private individuals or companies. This type of loan is typically used for investment properties and has a shorter loan term than a traditional mortgage.
Home Equity Loans
Home equity loans are loans that are backed by the equity in your home. This type of loan is typically used for primary residences and has a longer loan term than a hard money loan.
Once you’ve selected a loan type, you’ll need to apply for financing. This process will vary depending on the type of loan you’re applying for.
- Make Improvements
Once you have funding, it’s time to start making improvements to the property. This is where your creativity and vision will come in handy.
You’ll need to make sure that the improvements you make are in line with the neighborhood. Make sure it has a great appeal to your target buyer.
- Sell the Property
Once you’ve made all the necessary improvements, it’s time to sell the property. There are a number of ways to sell a property, such as:
Listing it on the MLS: You can list your property on the MLS through a real estate agent.
Selling it yourself: You can also sell your property yourself without the help of a real estate agent.
Selling it at auction: Another option is to sell your property at auction.
Once you’ve selected a selling method, you’ll need to price your property competitively. You’ll also need to stage your property and take good-quality photos.
- Manage the Closing Process
Once you’ve found a buyer for your property, you’ll need to manage the closing process. This includes ordering a title report, scheduling a home inspection, and managing the paperwork.
- Repeat
The final step to success is to repeat the process. Once you’ve closed on your first property, you can start looking for your next one. The more properties you flip, the more experience you’ll gain and the easier the process will become.
Be sure to be on the lookout for Properties for sale and repeat the same process to ensure you have houses to flip at least once in a while.
Start Flipping Houses Now
Flipping houses can be a great way to make money, but it takes a lot of work. There are a few key things you need to do to be successful.
First, you need to find a good location. Next, you need to find a property that needs some work but is still in good condition.
Once you have found a property, you need to make sure you have the finances to fix it up. Finally, you need to find a buyer who is willing to pay a good price for your work.
If you follow these steps, you will be well on your way to successful house flipping. So start flipping houses now!
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