Flipping Foreclosed Homes
Know Your Budget
The number one tip when it comes to house flipping is to know your budget and not give into the temptation of exceeding it in the hopes that you can chase higher profits.
Before you even start looking at any houses, figure out how much you have to spend in every area of the transaction. Know your limits when it comes to the purchase price of the property and understand how much it is going to cost you to do whatever work needs to be done. When buying a foreclosed home you are often asked to buy it as-is, so you can’t count on any smaller issues being touched up for you. Plan for everything and make sure you have some money in reserve, just in case.
Select The Right Market
Some cities are better than others when it comes to flipping houses, so be sure to take a little time to research the current figures to see which ones are currently hot. Of course this means having the capacity to be able to travel from state to state, which may not be desirable when you are just starting out.
If you want to stay local then you need to be sure that there is a market available for the properties you work on. If your research indicates that it is not a seller’s market right now, you might want to hold off on purchasing any properties until the conditions are more favourable to your goals.
Get The Right People
Tradespeople can make or break a job like this, so it is essential that you are working with people who will do a good job and who you can trust to not overcharge you for every little thing.
Over time you will find that you establish relationships with workers that you can trust, but when you are first starting out research is going to be your best friend. Ask anybody you know who has experience in house flipping if they can refer you to anybody and check the web to find out what sort of feedback the people you are thinking of working with have. It will be time well spent, as it should mean you avoid mishaps and aren’t left with a shoddy job.