Whenever something new comes into your life, it can be slightly intimidating, regardless of what it is. This is also true for flipping houses. It’s not uncommon to feel nervous or apprehensive when you’re making your first flip. The reality is this feeling will be common for several flips until you get comfortable enough with the entire process.
The majority of people fail to make any real money on the first flip, chalking it up to a learning experience. When they get to their next flip, they have an idea of what to do and not to do during the process and have a positive attitude that things will be better. If you want to steer clear of those pricey mistakes made by novice flippers, then it’s time to know the five ABCs of flipping houses tips.
ABCs Of Flipping Houses – Five Tips To Help You Make Money The First Time Out
Tip 1 – Get An Appraisal
Above anything else, get yourself an accurate appraisal on the house you want to flip. Make sure you compare with other homes that are in better condition, similar sizes and style, all in the same neighborhood. You never want to purchase the best home on the block; instead turn your attention to the home that needs a lot of work. You can turn this broken down home into a profit with a little effort. Your appraisal should disclose the home’s actual value in comparison to the buying price. Speak to your appraiser about what the home will be worth after the improvements are made.
Tip 2 – Be Bold/Act Bold
If you want to make an impression, you’ll need to make some bold moves. Flipping homes is pretty bold but you don’t want to get into too risky of waters just to lose. However, if you play it safe, you’ll end up getting burned as well. Don’t over finance yourself and safeguard the expenses and budget. After all, the idea is to seize the eye of a potential buyer/owner of your flipping property.
Tip 3 – Have A “I Can Do It” Attitude
Never undertake house flipping if you don’t have the confidence to do it. After all, you must stand up to different people including contractors, vendors, and inspectors if you want the best prices on the things you need to be done. Believe what you feel but also take the suggestions of those who know better than you about certain aspects of your home. Remember you are spending your money to get the most out of it; don’t get taken for a ride.
Tip 4 – Stay Focused
If you want to see your dream become reality, you need to stay focused. You need to be slightly pigheaded to go through your first flips. However, you need to remember that flipping houses aren’t as easy as one makes it sound. It’s not the easiest way to make your living but it can be done. Potential flippers are always on the lookout for the one property that will get them the most profit. However, if you’ve got a home that’s just under your skin, you’ll have to push yourself to get things done.
Tip 5 – Get and Stay Excited
Above anything else, you need to be excited about flipping your first piece of property. You need to keep that excitement up even when you get bad news about the house and the costs to deal with it all. Excitement is a great ingredient to have for flipping houses.
These five tips are just the beginning of the ABCs of flipping houses and investing in real estate but you get the idea of how the whole idea works. Now all you need to do is apply what you learned and get in the market.