Homes by Email
Be the first to see new listings as soon as they hit the market!
Flipping houses is as easy as buying one, fixing up a few things, and selling it, right? There are plenty of TV shows that can get it done in 30 minutes, so it won’t take too much time, riiiiiight?
We wish it were as simple as HGTV’s Tarek and Christina make it look on Flip or Flop. But it’s not. And it’ll take longer than 30 minutes.
Flipping houses is one great way to optimize real estate investing strategies, but it’s not quite as simple as it may first seem. There will be incredible moments full of satisfaction and tough struggles full of questions. Here at New Dwello, we’ve been flipping houses for more than 21 years and are happy to lend that experience to you on your investing endeavors. We’ll mentor you and be your teammate throughout the entire process.
Real estate investors lean toward house flipping to make a profit. It starts by purchasing a home -typically the more affordable, less-wanted homes that are usually bought at auction. After a few months and some good ol’ TLC, investors sell the house for a profit. This is the goal for flipping houses; however, bad decisions can cause flipping houses to spiral from a money-making hobby to an out-of-control mess quickly, sometimes costing investors any profit.
A person who invests in risky houses will not typically get approved for a loan without a high credit score. Many lenders have tight requirements in this area. Lollie from New Dwello has her mortgage license, so she can help with the lending and financing piece in house.
There’s no time for private mortgage insurance (PMI) in flipping houses, so pay for the down payment upfront with cash. Another option is a home equity line of credit (HELOC) in which you can borrow against the house to help buy the home. Small loan amounts are often granted to help cover other costs associated with this real estate investment, such as the closing costs, realtor fees, and renovation costs.
Knowledge about the real estate market helps make for wise house flipping decisions. Choose houses in up-and-coming areas, locations with great amenities, or houses with incredible and trendy features that need a good sprucing. Since this is a fast transaction, it’ll be easier to sell when the market is favorable.
There are a few common factors about which nearly every buyer cares. Real estate investing is most profitable when the flipped house includes these qualities:
Utah is a state growing in popularity, and the Salt Lake City area is a dream. Nestled between beautiful open landscapes and an innovative growing
Good Foundational Condition
To flip a house is one thing, but to completely demolish and rebuild a home is a whole ‘nother monster. A strategic investment is in a home with good foundational structure that can use revamping. Inspections may not be viable options in short-sales or home auctions, which is where many houses that get flipped are purchased. If you’re not comfortable judging the quality of the home structure, bring along a partner who can help you make strategic, profitable decisions.
Education is important to many home buyers, which means buying and flipping a house in an area with good schools is typically more rewarding and easier to sell. Along the same line good schools, buyers base purchases on crime rates, employment opportunities, neighborhood amenities, and other lifestyle factors.
Selecting a home that needs to be taken from the 1970s shag carpet to the 2010s beautiful wood flooring may be easier to update and sell than a house with extensive water damage that needs a new roof and siding. The best improvements are improvements you can make without financially breaking the bank that are also trendy, accommodating, and relevant. Which improvements will make good profit margins come sell time? Focus on those first, and think about the price tag as you choose the house you want to flip. A good way to cushion these estimates is to add 20 percent to your final guess in order to accommodate for unforeseen problems or additional improvements.
Flipping a house is no walk in the park. It’ll take daily work, so choosing a property that’s close to where you live is going to be better in the long run. No, it’s not necessary, but we’ve seen greater success in the big picture with those who choose to follow the real estate investing trends in the nearby areas.
Investing in a flip home means purchasing a home that is currently offered at a price lower than the value. If it’s equivalent to or higher than the value, chances are high that you won’t walk away with a profit.
Now it’s time to focus on the nitty gritty workflow of real estate investing.
First things first, find a partner who can help you through the house flipping business. Don’t think YouTube can get you through it all; you need a mentor who can give you applicable advice for your situation.
Foreclosed and short-sale homes are typically the homes on the market that will be sold under the value. Foreclosed homes are the gems for flipping houses. Check out online real estate listings of foreclosed, bank owned, court auction, or short-sale homes. While you may not be searching for the property that you’ll call home, you’re searching for a property that is a serious investment, so the research should be taken seriously, too.
After you find a market listing in which you’d like to invest, it’s time to make an offer. Whether you’re an avid house flipper or a rookie, chances are there will be competition on the low-priced homes. At this step, it is critical to stick to the set budget. Remember, it’s better to walk away from a house that costs too much than to jump into an investment hole and hope to dig yourself out. Keep waiting for the right property, so this house flipping project becomes a fruitful investment.
Put those Hands to Work
Once you purchase the home, it’s time to get to work! Walk through the house and create lists of projects and improvements to be completed. What can
List and Sell
Congratulations! Flipping the house is almost complete. When the hard work is done and the house looks better than anyone could’ve imagined, it’s time to put it back on the market and reach for that beautiful profit. Work with a trusted realtor to list the house online and in other mediums to get out the word that a newly renovated house is on the market! A good realtor can negotiate a fair and well-valued price for your investment. Hopefully flipping a house was a profitable real estate investment for you.
Lollie Pedersen leads the New Dwello real estate company on your behalf. There’s nothing more important to her than the success and happiness of her clients. That means partnering with New Dwello means partnering with a mentor, a listing agent, a certified negotiator, a hard worker, a remodel design and staging expert, and a selling agent. It’s all of the services of flipping a house in one sweet package when you work with New Dwello. With 21 years of experience, we promise we know how to flip a house, and we’ll help you do it.
Start your journey of flipping houses today!