When it comes to making money in the process of flipping houses and
other real estate investments you will find all types of do's and don'ts
along the way. The truth of the matter is that these are extremely
useful whether this is your first house flip or you have been flipping
houses for years. In fact you might just find that you can learn
something new on occasion by reading lists such as this even if you've
been flipping houses for years and have many successful flips under your
belt.
1) Don't forget to look into the neighborhood prior to purchasing. You
will want to make sure that the property you are considering is a good
fit for the neighborhood. You should also take the time to make sure
that the plan you have in mind for the property will match well with the
other neighborhood residents in order to guarantee a quicker sale.
2) Don't use up your whole budget without proper cause. Your budget is
what you used to determine whether or not the house would be a
profitable venture. If you blow your budget and cannot recover the extra
money you've spent in the selling price on the house you will have
seriously cut into your profits if not eliminated them all together. The
goal in property flipping is to get in and out quickly and spend as
little money as possible in order to make as much money as possible.
3) Don't forget to set daily goals and hold yourself accountable to
those goals. If you don't reach your goals for the day it can set the
entire project back by as much as a month depending on the goals and
what has to be rearranged as a result. Stick to your timeline and your
daily schedule in order to avoid potentially costly delays in time and
money.
4) Don't overlook the exterior. Curb appeal is what lures buyers into
the property. If you spend all your money, time, and effort making
improvements to the exterior of the home you will have little left to
make the outside appealing to potential buyers. A homebuyer is in the
market for the entire package. A home that looks run down on the outside
leaves the impression of being neglected on the inside and many
potential buyers will never walk inside if the outside looks forlorn.
5) Don't spend money you don't need to spend. While it would be
wonderful to put in granite countertops and gourmet kitchens into every
home it isn't always practical and this is often money that will not be
recovered, particularly in homes that are in marginal neighborhoods. If
you want to get the most for your money avoid costly expenses that
aren't exactly necessary for the successful completion of the flip.
Resurface bathroom fixtures rather than replacing them if possible and
use new cabinet doors or hardware rather than adding new cabinets all
together to cut down on expenses. In other words, salvage what you can,
fix what needs to be fixed, and add a few cosmetic touches before moving
on.
The market for real estate is a very fickle market. Avoid risking too
much time and money on a property that isn't going to recover those
added touches and expenses. Instead hold onto those ideas for higher end
flips once you have a few successful flips under your belt.
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