Home Buying Tips – Understanding How to Buy A House To Flip For A Profit
Here are some steps and tips you will want to follow in order to avoid common mistakes most investors make when buying a house to flip. Remember it’s all about the numbers!
1. When flipping a house, the goal is to make money! The money you make from the house is made when you actually buy the property and you cash the check when you sell. Therefore, each part is very important!
2. Be sure to see the inside of the home – This is the step that you can not AFFORD to skip. When writing a contract on the property, it is imperative to write in an inspection period for as long the seller can stand, that way if something goes wrong you are protected.
3. Outsource the work: – Your job as an investor is to analyze deals and figure out your exit strategy to make a profit. You should delegate all other work to your team so you have more time to do the highest priority activities that generate the most cash!
4. Market Value Rule: This rule is simple. When flipping a house, it is important to place the house for sale 1-2 percent below the market value. Don’t be greed or fearful, simply have a mindset that you want to help people out, instead of “what’s in it for me.” You always make more money this way and when a problem or delay arises you are ready.
5. Have an agent – A good agent that is investor friendly can be hard to come by but once you find that perfect one you will see it is worth more than gold! The resources that agents have available to them are great, be sure to treat your agent well and your golden! You are an investor; DO NOT try to sell your own house. Use your time to find other houses to invest in. Allow your agent to take care of all the details around the selling of the house.
Keep these steps in mind as you look to flip properties for a profit and you will be successful. The most important thing is mindset, no matter what is around you always believe that you will make a profit. The profit might not necessarily be in monetary form but as you gain experience you will realize things that will help you in the future. Build a great team and relationships and trust me there is no way to fail!