3 Most Basic Tips On Flipping Houses For A Living Flipping houses for a living is an interesting way to make a profit in a short amount of time. If you are considering flipping a house or a series of homes, what should you watch out for? Here are a few tips that will help you succeed as you get your feet wet at a home flipper.
Never Judge A Home By Its Cover
In many cases, you will not be able to see the interior of a home before your buy it. This is because buyers are not allowed to tour or otherwise look inside of a home that they do not own. This means that you have to be careful when you purchase a foreclosed home. If you get lucky, the home will be ready to sell after applying a fresh coat of paint and some new locks. Unfortunately, you could be looking at a home that had appliances, walls and wiring ripped out by former owners who had nothing left to lose.
Never Assume A House Will Sell Immediately
While a home could be ready to sell within 30 days of being purchased, you cannot control how long it will take for an interested buyer to come along. Most professionals advise to budget at least six months worth of holding costs whenever you buy a property. Holding costs are costs such as the mortgage or any HOA dues that you have to pay.
Always Have Money On Hand To Make The Purchase
Any property that you purchase needs to be paid for in full within 24 hours. Many auctions require you to pay at least 10 percent of the purchase price upfront. Those who want to buy a property to flip should have their money lined up before making any offer on the property. Private investors, bank loans or using personal savings are all legitimate ways of paying for the house.
Flipping a house is certainly not something to do on a whim. You have to research the market, know where you are going to get the money for the home from and how long it will take to sell. If you prepare yourself ahead of time, you will be ready to deal with whatever adversity comes your way during the flipping process.