House Flipping and Flippers
After all, what is House Flipping?
Getting straight to the point,
House Flipping is the purchase of a property for a lower price than the market, giving rise to a renewal that aims at resale and profit.
Another way to buy real estate and make a profit from your sale is by "holding the property," relying on future appreciation inside a heated market. In this article I will talk about the first case of House Flipping.
When done the right way, house flipping can be a great investment. In a short time, it is possible to do an assertive reform and sell homes for a greater amount than was paid on the acquisition as I showed on the channel, Construindo na America .
In theory it sounds simple, right? You buy a house for a price, paint some walls and change some lamps and resell the house for a surprisingly larger amount! - Ah, I wish it were like that! - In fact, as in every sector, it takes certain experience and specific market knowledge that only time can teach you. Knowing how to recognize the best deal opportunities, finding the right finances for a project, hiring professional teams to do a remodeling and tracking works, buying good materials without expensive pays are some examples of the daily challenges of someone working with house flipping , so-called flippers .
Simply put, the flippers are responsible for:
Find offers of properties priced below the market
In the United States a house is available in the market for 38 days on average until it is closed - font . Therefore, in most cases you need to be quick to review the necessary reforms in the homes that came on the market and consider what are the best offers to invest and get good margins.
Manage the project budget without losing sight of profit
Once the house was bought and the post-renovation sales price was fixed, it should set the budget for the project.
Structuring a scope of reform
Whenever I visit a house to flip, I prepare a draft of all the improvements that need to be made in the property. This helps me analyze how long it may take to get the rehab done, how much it will cost and especially: whether I should just close the deal. Based on this draft, I prepare the real scope of the houses I buy, making clear to me and my team the renovations necessary for this property to reach the stipulated sale value.
Hire professionals to execute the project
In the ideal world, there are professionals who are fast, detailed and who charge little for the service, but the truth is that it is not always possible to find professionals who have these 3 characteristics. It is the role of the flipper to know the profile of professionals in the region and find a balance between speed, cost and quality in the service provided.
Choose materials that will value the home
It does not help all that effort if the end result after the renovation the house does not draw the attention of buyers. Painting, chandeliers, flooring, doors and cabinets for example, are key points for enhancing a renovation.
Advertise and sell the house
Each neighborhood has different profiles of buyers, which in turn have different needs. That's why I choose to work with different realtors for each neighborhood, they know the region, know the best approach, and understand the needs and profiles of buyers better than anyone.
In short, House Flipping may seem simple, however, live on the skin of a flipper is a challenging task, and it has been gratifying to me.
