Flipping houses is a great way to improve the local community and make a killing in terms of profits. You may not own the property for long, but you can do much with it. However, the secret to success here is to only DIY what you are personally a professional in. Without that professional touch, you’ll never get the full possible value out of the properties you flip. In fact, you may run the risk of making the property completely unsellable.
Not being a professional electrician, plumber, or general contractor does not mean that you are barred from the possibility of a fix-and-flip career. It just means that you need to master the art of project management and then find the best people to work with.
A lot of research and planning needs to go into every single fix and flip project, and if it’s your first time, you may feel at a loss. Not to worry, as this guide will help shine a light on your next steps:
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Work with an Inspector to Pick Good Projects
You want to keep your first fix and flip project simple. What this means is you want a property that is solid. There’s nothing wrong with the walls, foundation, electricity, or plumbing. Fixing those problems can be very costly, and you won’t want to take it on as a first-go-around project. Instead, work with an inspector to find great possible projects that are outdated and in need of a refresh but are ultimately solid homes.
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Getting Financing
You don’t need to take out a personal mortgage to pay for the project. While in some areas there is a benefit to taking out such a mortgage in terms of return, those loopholes are being tightened worldwide. The good news is that taking out that personal mortgage isn’t a requirement. You can instead look into short-term loans for fix and flip projects. These loans are high-value and short-term. What does this mean? It means you pay them back when you sell the property and get the upfront financing you need to make the project happen quickly.
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How to Find a General Contractor You Can Trust
Flipping houses is so much easier when either you or a close friend or family member works in construction. If not, then you’ll need to ask around to find a short list of general contractors. Have a meeting with them, and gauge how you feel. You will essentially be both business partners and that contractor’s client. If you don’t feel like they are listening to you or aren’t assuring you in the ways you need, move on. A strong relationship here will make a huge difference.
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Use Effective Project Management Tools
One of the best things you can do is become a master at project management. An easy way to kickstart this is to use the right management tools that help you stay updated on everything from when your order is coming in, to what projects are currently ongoing and what ones are finished. As a bonus, this system typically makes it easy to stay on top of payments so that everyone stays happy and you avoid late fees.