How To Boost Your Fix N Flip Profits
There are many costs associated with fix and flip properties such as taxes, renovation costs, insurance, closing costs, maintenance, and real estate commissions. In order to boost your fix n flip profits follow these 4 tips:
1) Only Repair What Is Necessary and Know Your Repair Costs
Keeping renovation costs low will boost your fix n flip profits. Concentrating on curb appeal, kitchen, and bathroom upgrading will bring the best return on investment. To decrease the turn around time of a fix n flip, know your repair costs ahead of time and have contractors already chosen to make repairs. Also, do as much of the work yourself as you can.
2) Finance With Cash Or A Home Equity Line of Credit (HELOC)
Many investors cannot afford to purchase with cash, however if you are able this will boost your fix n flip profits. A second choice is to use a HELOC from your own home or an existing property you own. The HELOC should be set up ahead of time and you draw on it when you make a purchase. Be sure you are able to pay it back, however, or you may lose the property you loaned on.
3) Don’t Buy Homes That Need To Appreciate
If you get a good deal on a home, you should be able to make a profit of $25,000 to $50,000 on it and flip it in 4 months time. Buying and holding for appreciation is not a good practice in most cases as it ties up your money, and the property value may actually decrease.
4) Secure A Realtor’s License
By securing a realtor’s license you will be able to save on realtor commissions both when buying and selling. When selling you will get the commission minus your broker’s cut, unless you are also a broker. When buying properties you pay about half. This can dramatically boost your fix n flip profits.
Following these 4 tips can greatly boost your fix n flip profits on your next property.