More people are turning to real estate flipping — renovating a property and selling it for a profit — to generate income. While there can be significant rewards, there are also risks involved. The key to success is understanding these risks and avoiding them. Let’s look at some of the most common risks associated with real estate flipping and what you can do to protect yourself.
- You Select the Wrong Property. New flippers want to buy a property and begin renovations quickly, but a project’s profitability depends on how carefully you select the property. This selection process includes conducting thorough due diligence before making an offer. You won’t see this on house flipping TV shows because it takes time and research. You may have to pass on many properties before you find the right one. Ideally, you want to buy properties that need minimal repairs. When you work with us, you’ll have a licensed realtor on your team who can identify which properties are solid flips and which ones you should skip.
- Investing in Home Improvements That Take Your Profits. It’s essential to be strategic about renovating and improving your investment property to ensure its market value increases. These upgrades could include new fixtures and appliances or increasing curb appeal through landscaping. It depends on what buyers want, what the real estate market will support, and the expense of the project. Novice house flippers tend to go overboard in renovations and end up losing their profits. We have interior design expertise and are happy to advise you on which renovations have the potential to maximize your profit. Not all upgrades will generate a higher selling price.
- You Don’t Attract the Right Buyer. Real estate flipping doesn’t end when the house is finished. Proper assessment and marketing are ultimately going to determine your profit from real estate flipping. We know the area housing market and what homebuyers are looking for. We can also help you determine a competitive price for your property to attract more interest. Our house staging experts can set the home up, so prospective buyers can easily imagine living there.
At Bleu Haven Homes, we understand the market and have real estate flipping knowledge you can trust. Contact us to get the most market value from your investment.