We’ve all seen the reality TV shows about house flipping, where experts buy houses cheaply, fix them up and sell them for a fortune. Surely it can’t be that hard, we think, dreaming of making millions on the real-estate market. But is it?
The short answer is: it can be! Flipping houses can carry a lot of risk if you don’t know what you’re doing, and it’s easy to get in too deep. But there are some shortcuts to becoming a fix and flip pro that could help you make your fortune…
Location, Location, Location
We can’t stress this enough. The number one way to sell a house for a massive amount is to ensure it’s in a great location. The ideal fix and flip is a house in an up-and-coming neighborhood: one with low crime, high employment and high housing demand. Get it right, and you could be looking at a 200% profit margin. Keep in mind local schools as well, as they can affect house price.
Do Your Research
This one sound pretty obvious, but is extremely important. Do you have a rough estimate for how much the house will cost to fix and flip? Look into the basics – like how much carpeting will cost for the house – and develop an estimate from there. This will help you estimate your profit margin, and get a sense for when you’re going over budget.
Don’t Bite Off More Than You Can Chew
First time trying to fix and flip? Consider starting small. Practice by renovating your own home, to get some experience. Then, start with a smaller, cheaper property instead of trying to flip a four-bedroom mansion. Your financial gains will definitely be smaller, but what you lose in money you’ll definitely gain in experience. It’s also important to consider the risk involved when starting out; starting with a smaller investment also carries less risk.
Fixing and flipping houses is risky, but can be massively rewarding both personally and financially. Start small, read up on your subject, and you should be reaping the rewards in no time!
Contact Black Wolf Capital Group to get capital for your new fix and flip venture today.