A Guide to Flipping Houses
Although Best House Flip is an overarching guide to
flipping houses, this section –working on a flip– is really the guts of house
flipping because it involves both strategic and manual work. Once you’ve
purchased a flip property and done some creative real estate investing, it's
wise to determine a target market, make
forward-thinking decisions about what
you want to accomplish, set your budget
and survey the various material and purchase
Without a clear indication of your target
market, your property makeover could be sub-par due to lack of direction.
Alternatively, if you know the demographics and psychographics of whom you’re
renovating for, working on flip can be much more focused process.
Once you know who you're flipping for, it’s time to make
strategic decisions about which
projects to undertake and which to leave. Some of these decisions will be rooted
in the needs and wants of your target, and others will be made according to your
budget. This aspect of flipping is similar to shopping, you could buy everything
you like in a store, (assuming you have a gold credit card) but it’s better for
your financial health and end goal to be selective about what you choose to
Now that you’re in the mindset of making strategic decisions, it’s time to
set your budget. The budget will become
your guidepost. Setting a budget is essential to realizing your initial ROI
results and will keep you accountable.
Knowing what material and service-oriented
purchase options you have at your fingertips could mean a massive savings in
your makeover budget. For example, you could buy everything at retail price, or
you could find liquidation sales, auctions, wholesale buys or the like. What you
choose to pay and where you choose to shop can assist in the 'wow factor', for
getting granite countertops for the price of laminate countertops.
Be selective and know what you’re up against. Making the right decisions when it
comes to working on your flip is a major factor in house-flipping success.