10 Characteristics of a Successful House Flipper
10) Knows the market. A good house flipper is someone who has a firm handle on
the market fluctuations within their local real estate
area. With this knowledge they
can spot a deal or know when to walk away.
9) Researches prior to flipping. Research is a huge property flipping
consideration which should not be taken lightly. A savvy house flipper must
research the overall area for historical market fluctuations, the neighbourhood
in which they are planning to buy and the community plans pertaining to the
neighbourhood among other areas. Other research worth performing is related to
costs involved in flipping such as mortgage payments, mortgage insurance, cost
of materials and labour, whether labour is readily available, etc…
8) Has an excellent handle on their budget. A house flipping project should
never be entered into without a
budget. Without a realistic idea of the
forecasted costs, a flip can easily run over budget and negate the whole reason
for house flipping in the first place –the profit.
7) It’s not about you. Knowledgeable flippers know that design plays a big role
in the final product. Colour choices, materials and finishes can make or break a
flip for the prospective target, so focus more on simplicity rather than your
personal style. Because you are trying to appeal to the masses within your
target market, don’t go with colours, materials or finishes that most people
won’t appreciate or relate with. Aim for tasteful yet neutral design so your
target can imagine them self in the space without being too distracted by a
badly-coloured wall.
6) Only does the necessary updates. Although it is tempting to go ‘all out’ when
updating a flip, at the end of the day, flipping is about only doing what’s
needed to get a place structurally and visually ready to sell. Sometimes
enthusiastic renovators end up putting an extra $5000-20,000 dollars of
unnecessary money into a flip just because they like renovating and they let a
project get personal.
5) Understand value of staging. Since you preparing to sell a product that’s
move-in ready, take cues from the developers and
stage your flip. Create subtle
sounds, smells and sights that make people feel comfortable in your space and
further ease them into the buying process. Staging is all about paying attention
to detail and creating a warm and welcoming appeal. And for goodness sake, put
down the toilet seat!
4) Is in tune with the potential buyer. Without knowing the characteristics of
your potential buyer it’s difficult to determine what materials to use and
whether to position your project as entry-level or more high-end. A common
mistake is house flipping is misinterpreting the
target market and over or
under-doing a renovation.
3) Time Conscious. The age old adage “time is money” cannot be more true for the
house flipping industry. Not only do cosmetic and structural updates take time
and money, but with every month that passes another mortgage payment is handed
over to the bank.
2) Approaches their flip strategically and with integrity. Smart flippers know
the value of approaching a project in a strategic manner. A calculated flipper
is a planner who keeps a tight reign on their budget, only does the necessary
updates, immerses themselves in the local real estate market, knows how to
market and position their flip and is constantly aware of how time impacts their
project.
1) Has a varied skill set. Throughout the course of a project, a house flipper
you will wear a number of ‘hats’--wear these hats well and a flip has a better
chance of success. Examples of roles successful house flippers embody are:
project manager, contractor, accountant, designer, problem solver, real estate
professional, public relations consultant, marketer, etc…
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