Real estate flipping is something that many people are interested in. After all, the process looks very alluring when it is broken down into short segments on a television show and ends with the flipper making off with thousands of dollars! The dramatic transformations, high stakes entertainment and payoff can create a process that is both tempting and also misleading to beginner flippers. If you are considering getting into real estate flipping, our experts at Bleu Haven Homes would like to give you a few tips before you get out your checkbook.
First, don’t work alone. While you can do the actual work or subcontract it out, when purchasing the properties, get expert help like ours. You will want to find a real estate expert in your area who can not only help you find out a home’s actual value, but also help you determine realistic selling points with improvements.
Second, do the math. Many real estate flipping experts stick hard and fast to the 70% rule, which states that you should pay no more than 70% for a price that is calculated after repairs, minus the improvement costs. Don’t let your emotions play too much into whether or not you purchase a house– instead, stick with the cold, hard math facts.
Finally, don’t be tempted to cut corners. Hire quality contractors and real estate professionals to work with you. Make sure you are leaving the house structurally sound and safe, not just attractive, for the people who buy it.
If you have questions about real estate flipping, we want to help. For more information about our consulting services for investment properties, please give us a call today.