Once you venture into flipping houses, you’ll realize there’s plenty to learn. Unlike what you read in magazines or watch on TV, flipping properties isn’t as straightforward as it looks. However, that doesn’t mean it’s impossible. Here are some steps to help you flip houses.
Check Your Credit Score and Determine Your Funding Source
You’ll need funding to purchase properties and renovate them before selling them. But before lenders give you a loan, they’ll run a credit check. Stay ahead and check your credit score to know if it needs improvement. Remember that even with a low credit score, you still have several financing options. Once you’re done, start researching different funding sources, including private lenders and crowdsourcing.
Choose Your Market
Selecting the right market is important if your house-flipping business is to succeed. Research things like housing demand, type of property, median home prices, etc.
Look for Successful Indicators
Look for important factors like property location, condition, and possible rehab cost when going through property listings. These factors determine the cost of flipping houses and the potential profit you can gain when selling.
Make an Offer
The offer price is important as it will determine the profit you’ll make from the property. While you don’t want to undermine the property sellers, try negotiating as much as possible to get a good deal.
Inspect the Property
Hire a property inspector who will pinpoint all issues with the house. Doing so ensures that during renovation, all problems are fixed. This includes structural, electrical, and mechanical issues.
Interview and Hire Contractors
Take the time to find good contractors—interview several of them while factoring in their costs, experience, and reputation. Don’t be scared to keep looking until you find suitable people for the job.
Get The Right Permits
You’ll need to obtain the right permits to rehabilitate a property. The head contractor will help you in this step by informing you about which permits you need. Once you have the permits, you can start your project. Ensure you inspect the property once it’s done before putting it on the market.
If you’re new to this, flipping houses may seem complicated, but it’s actually not that hard. Follow the steps we have mentioned, and you’ll be fine. To learn more about flipping houses, contact Hemingway Financial Group today.