Have you watched one of the many TV shows with professional house flippers? It may be a good source of entertainment, and you can even take some nice ideas for your own business. However, don’t think you can learn everything there is to it within a few episodes of a show. You should take into account that a lot of the process isn’t shown. In fact, you can not only reduce the risks but also improve the chances of improving your profit — if you learn some essential tips you won’t figure out watching HGTV. So, continue reading to find out how to flip houses easily.
How to Flip Houses in 5 Easy Steps
1. Develop a plan
A plan sounds simple, but it takes some effort and can result in a great contribution to your overall business. Don’t only take notes on prices, budget, and contractors. Establish a real business plan specific to this type of market.
By doing so, you will not only avoid being trapped in pitfalls most unprepared house flippers do. You’ll also be preparing yourself for any contingencies that you didn’t add at first but could at least predict.
When you have the time, separate a few minutes to read more on how to create a business plan for house flipping. You’ll be able to understand the principles of strategically creating one.
2. Know which improvements add value
Yes, the houses on TV look gorgeous when you add a lot of expensive things to it. However, it’s not smart to do the same when you aren’t a famous realtor trying to look good on TV. You want to maximize your profit while delivering a house that attracts buyers, but you don’t want to go overboard.
In order to achieve such a goal successfully, you need to know which improvements are low on cost and add value to the house. You can make a home look like a high-end product without spending dozens of thousands of dollars unnecessarily.
There are a lot of guides on the internet, showing the best fix and flip loan options, renovations and other factors to profit in house flipping.
3. You may negotiate with the seller
Believe it or not, the relationship with the seller of the house doesn’t have to end when the home is yours. With some experience and a portfolio, you can prove your readiness and ability in the field. Then, you’ll be able to find a bargain.
Why would someone charge less for someone that is experienced in house flipping?
Well, by increasing the certainty that you are capable of profiting from the flip, the seller might be interested in getting a part of the final sale price. The main advantage here is to reduce the initial cost, therefore saving more for other projects.
If you are not sure about how to price a flipped house, you can learn with material on how to determine the value of a home.
4. It’s important to know your prospective buyers
Everything from the changes in the house to the price you are going to ask is related with your market. That includes everyone who can and probably would buy the house from you, in a realistic scenario.
It’s mandatory that you know them, or you might end up with a property you can’t sell. The TV shows might show it’s easy to find people to buy houses, but in reality, there is a lot of planning involved in it.
5. You must take care of taxes and obligations
The boring part of the job has no room to be shown on TV shows, especially those related to accounting and tax obligations. Even though you don’t see it, you’ll end up paying a large sum of money in fines if you ignore it in reality.
Make sure to consult with someone that is a specialist or read a lot about what you owe to the authorities. If you don’t, you are risking losing a lot from your profit.
Any type of TV show is developed to entertain people. You can acquire some knowledge while watching it, and having fun is no crime. However, you must be careful and realize they don’t show everything within the business of house flipping.
Those five tips on house flipping will most certainly be precious to your trajectory. Therefore, try to apply them to your business as much as possible, and keep learning from real content out of the TV.