1. When flipping a property or a house, the goal is to make money. The money you earn on the home is earned when you buy the property you would like to invest in. Therefore, when making the purchase of your property, you must consider the costs of repairs and improvements to the property. Many people buy houses with the intention of turning them into mansions (for example), but soon realize that the house will be too expensive to sell or that the repairs will cost more than the purchase of the property. Buying a house for, say, $67,000 and selling it for $75,000 is not a profit.
2. Be sure to inspect the property: – It is definitely worth every dollar spent to have a complete inspection of the property you are looking to buy. This is the step you cannot AFFORD to skip. Inspectors are qualified and trained professionals who can find flaws, structural or otherwise, in the property that you may simply miss or not notice. During the home contract agreement, smart investors have 7 days to do a full inspection. This way, you will have plenty of time to look at all the repairs that might be needed to the property. This information gives you time and time to negotiate or opt out of the contract entirely.
3. Outsource the Work:- As an investor, you don’t have time to do tedious and time-consuming repairs on any property. Your job is to find the properties and then delegate any work that needs to be done. Outsourcing itself can be a hassle and time consuming, so it is very important to obtain a list of contractors and develop a good working relationship with them. By doing it this way, you can get started on any of your projects right away, without wasting time finding the necessary contractors for the job. Most ownership changes can take 2-4 weeks. Developing relationships with your contractors will save you money, meet deadlines, and most importantly, give you the opportunity to get your property on the market in plenty of time.
4. Market Value Rule: This rule is very simple. When flipping a property or home, it’s essential to list it for sale, 1 to 2 percent below market value. This aids in a quick sale, allowing you to move on to your next project or switch quickly. You need to remember that your sale is actually in the purchase of the property and therefore it is important to sell without being greedy. There is no need to keep a property on the market for an extra 2 months, just to make a little more profit. This will really make you lose money. Your goal is to sell the property based on the competition in the market. If the property is priced too high, any buyer will simply find a better home, at a lower price, in the same market.
5. Have a Qualified Agent – You are an investor, not an agent. DO NOT try to sell your property. Use your time to find other properties to invest in. As long as you’re doing well with your real estate investments, you may be able to afford your own in-house agent. Be sure to hire a qualified and licensed agent and ask for proof of this. Let the agent take care of all the details of the sale of the property. If you decide to outsource to an agent, it would be wise to outsource from their list as mentioned in number 3 above.
If you remember these 5 steps, you will be successful in property investing. However, continue to research your niche so that you can offer the best services available to your buyers. This market is constantly changing, so when you have a better understanding of ‘people’; it will make buying and investing in property much easier.