Preparation. Research. Planning.
Those 3 things are completely essential to the business of flipping houses. If you’re getting started, or have been flipping houses for a while, these 10 tips will hold you in good stead.
Without further ado, let’s begin.
1. Read up and educate yourself about the business of flipping houses. Buy a few books, read a few blogs, and make sure you aren’t going into the field blind.
2. Meet your peers. Talking to experienced house flippers can give you insights that you would never receive through any other medium. Don’t look at them as your competitors. Instead, try to see if you can form a mutually beneficial relationship.
3. Prepare yourself to stay in the flipping business for the long run. It takes a lot of time to become good at flipping houses. Identifying the right properties, right opportunities and right deals takes time. Be patient.
4. Know your local area. Become an expert on it. Go through every sidewalk of every lane, and then do it again. Once you’ve gotten the lay of the land down, repeat the process for the next block, and then the next.
5. Build relationships with local real estate agents. They can alert you to new properties that become available on the market. They can also connect you to potential clients.
6. Make sure you have a sound financial plan in place before you buy any new properties.
7. It’s OK to be afraid if you’re new. Don’t let the fear cripple you though. Use it as a catalyst to spark growth and change.
8. If you’re on the fence, find a reliable partner for your first sale. Once you get the hang of flipping houses, you can branch off on your own.
9. Be warned – flipping houses requires a lot of time investment. Don’t expect to hold a day job, be a full-time parent and spouse and also be successful at flipping.
10. Know your strengths. Whatever you aren’t good at, you can outsource or build a team for. Time is money.
11. Look for creative financing options when you’re scouting properties. You don’t always have to put money in from your own pocket.
12. Take some time to understand the basics of constructing a concrete structure. You don’t have to impress everyone with your civil engineering mastery, but it helps to have your basics in place.
So, now that you know what to look for (and what to avoid) before flipping houses, you should be well on your way. In Part 2 of this series, we’ll talk about how to select the best properties to flip. See you then!