In short, Flipping is essentially finding a property that could use some updating, doing the updates, and then selling it for a profit in a short amount of time – typically in a matter of months. Rinse and repeat!
It is undertaking a project and a short-term real estate investment. To do this as a consumer, you will need THREE things.
ONE: You need to know how to do the work, or you need to know and trust someone who does.
You don’t need to do all of the work yourself. In fact, it’s far better to have a team of knowledgeable contractors who can get in, get to work, and get it done. This will save you time, energy, and money. But you at the very least must know what you’re willing to spend and what the scope of the updates are going to cost. Compare these costs with your real estate agent to get an idea of what your potential profit will be before spending a penny. Which leads me to my next point…
TWO: Partner with a knowledgeable real estate agent who you trust.
The right agent will simplify and expedite the entire process for you. Your real estate agent will find the right projects in the right areas which will give you the highest possible profit. This agent will also properly market and price the finished project on the back-end to ensure a smooth closing. Lastly, number
THREE: Use cash only.
I do not recommend borrowing money from financiers for short-term real estate investments. Why? Flipping is considered a higher-stakes investment, and financiers will charge significant interest rates which will eat into your profits significantly. Similarly, if something goes wrong, that financier still needs to get repaid. It is not a sustainable business practice. So remember: your cash is king.
As your real estate professional, I pride myself on being here to provide you with all of the tools and knowledge you need to succeed in the real estate market. Reach out any time.
Oh, by the way®… if you know of someone who would appreciate the level of service I provide, please call me with their name and contact information. I’ll be happy to follow up and take great care of them.
If you have any questions, please reach out to me. I’m always happy to help!