Buy to Sell: How to be a New House Flipper
Buying property and doing it up to sell is a very popular way to try and turn a quick profit. In recent years much of this is due to the scores of TV shows that show this exact process. But if you are new to it there are a lot of common pitfalls that the newbie can fall foul of and end up losing a bunch of money rather than making it. Check out these great tips that will assist you in making a great success of your new venture.
Identify What Type of Property
There are so many choices when it comes to choosing what type of property to renovate and sell on? You can go for a real wreck and this way you will, most likely, get a really low price on the purchase, but it’s almost certain to be a higher level of risk. On the other hand, you could go for several smaller and more budget places, like a few apartments rather than houses, the risk here is trying to not spend all your time juggling the various projects.
What are your Skills?
What are your skills? A very simple but important one. You should know your strengths and weaknesses, for example, if you are a carpenter by trade you can use that to your advantage but if you have no practical skills then it’s best to realize this and not try things that are vastly beyond your skill level. There will always be something that everyone can do, be it organizational skills, management or sales.
How are you Funding it?
Now you might be sure that the venture will be profitable and a huge success, but you will still need start-up capital. So you may have the funds in savings or investments ready to hand and, if so then you don't have an issue as long as you are willing to risk it. If not you can always consider Business loans for contractors so long as you have a solid business plan.
Make Sure the Project is Properly Managed
Now it’s easy to underestimate how much time managing a project like this can take. So if you have lots of spare time to devote to this then you can take care of a lot of the management yourself. But if you have less time available or even if you are a little unsure then you can employ the services of a good project manager and other key professionals. This might sound like a huge expense but proper time management and the benefit of their industry knowledge can be an invaluable asset.
Know the Market & Keep to Budget
You should have properly researched what the property will be worth once you complete the work. This should let you know what your margin for error is within your budget to complete the work and still make an acceptable level of profit. It’s not to say you should be complacent but it’s always good to know.