17 Ways to Ensure a Successful House Flip Every Time
In order to have consistent success on a house flip, you have to be doing a lot of things right, almost all the time. There are even more factors than the ones listed below for a profitable house flip, but if you pay attention to these 17 principles, you should be able to achieve consistent success.
- Have a solid exit strategy. With each house flip, know exactly what you intend to do with it.
- Know where the money’s coming from. Have a solid idea in mind about how you will pay for a house before you think about a house flip.
- Know the total cost of the money. If you’re borrowing money to make the purchase, be sure you understand how much that money is going to cost you in the long run.
- Find a house that’s salable. There’s no point in purchasing a house unattractive to buyers, so make sure it has curb appeal, good baths and kitchens, enough bedrooms, etc.
- Be aware of necessary repairs. Thoroughly inspect any house you intend to buy, so you don’t end up having to invest more in repairs than you might realize in profits.
- Vacant house insurance. Make sure you have vacant house insurance, to cover damage done by vandals or squatters.
- Make repairs immediately. As soon as the deal is closed, have your contractor make any necessary repairs.
- Have a good relationship with your contractor. This is an essential part of getting any house ready for sale, in the shortest possible time frame, and with good quality work.
- Don’t over-improve the house. Keep in mind that you are not moving into the house yourself.
- Stick to your repair budget. Get repairs done on time and under budget, so your house flip still yields a profit.
- Give the house a good cleaning. If repairs have made the house messy or dirty, get that cleaned up ASAP.
- List the house quickly. As soon as it’s practical, get the house listed so it can be sold.
- Be willing to negotiate. Be flexible about pricing, in the interests of a quick sale.
- Stay aware of holding costs. Be aware of all costs accumulating while your house remains unsold.
- Keep things neat. While you’re waiting to sell, make sure the lawn is kept trim and the house is kept clean.
- Only deal with serious buyers. Don’t even bother dealing with dabblers or semi-serious buyers – cut to the chase, and get serious right away.
- Learn from each sale. Take notes on what went right and what went wrong, and learn from it for the next time.
If you keep note of these 17 things, and maybe even add to the list, you can ensure yourself a strong investment of a house flip.