Tips for Flipping Houses
November 22, 2014
You want some tips for flipping houses, eh? How often have you heard the controlled media talking heads tell you that the real estate market is dead, the bubble has burst, or the recession lingers in real estate? I’ve heard it countless times just in the last year or so. Well, I’m here to tell you, flipping is here to stay! It never left. Flipped/rehabbed homes accounted for 4.6% of all U.S. single-family home sales in 2013, which is up from 4.2 percent in 2012 and 2.6 percent in 2011, according to data from RealtyTrac. Foreclosures have likely driven that trend. But increasingly, non-distressed properties are also overdue for house flipping. With that in mind, I’ll share with you some of my tips for flipping houses!
Tips for flipping houses: Tip #1 – Not all markets are the same…or even similar sometimes. What works in Seattle, Washington will not work in Toledo, Ohio. Obviously, one can flip pretty much anywhere, but it’s crazy to think that the same thing will work in another market elsewhere. Know your market and watch it patiently for the right deal.
Tips for flipping houses: Tip #2 – Don’t be scared to make a full price offer in certain situations. Use the inspection period as a chance to inspect the property for potential problems that could lead to a significant reduction in price. Essentially, you’re making an offer right out of the gate and then negotiating second. Of course, there’s a chance that you may not get the seller to reduce the price but if the numbers of your offer are strong, most sellers are hesitant to walk away from a solid offer.
Tips for flipping houses: Tip #3 – Network! Networking is the lifeblood of business. As they say, “it’s all about who you know!” If you don’t work your contacts and search out hidden opportunities, you won’t be a successful flipper in a competitive market.
Tips for flipping houses: Tip #4 – Make money when you buy a flip. It used to be easy to make money when you purchased a home because prices were rising so quickly. But these days, it can be challenging. A market with more realistic prices means that flippers need to look harder for the right houses and be disciplined not to overpay.
Tips for flipping houses: Tip #5 – Watch the market data – both local and nationwide. National employment numbers, consumer moods, and GDP provide some sense of direction. But real estate is also local, so track inventory levels, pricing trends, and local unemployment.
For more information and free real estate investing education, visit www.andrewcordle.com
