Flipping essentials
You are a house flipper. You are a real estate investor. Your goal is simple, and that is to make a profit from every home you purchase, fix up and then sell. The question is, though, do you have the tools to help you through this process?
Many people who get involved in house flipping do not have the necessary tools to pull it off. They lose money on their first transaction because of a lack of knowledge and resources. They end up leaving the industry not because they should not be in it, but because they do not have the resources to make it work.
Do you have the best resources for house flipping? If not, consider the following.
1. Property value tools: You will find these available to you on the web without cost. They help you to get an overview of the value of a property right on the web. You do not even have to pick up the phone to call an agent. They base property values on the recent sales of similar sized properties in the area.
2. A trustworthy agent: Some houses flippers are their own real estate agents and in that case, there may not be a need to invest in other professionals. However, unless you have access to the tools of the MLS in your local area, you need a trustworthy, licensed real estate agent to work with. This person has not only the knowledge and access to properties on the market, but they have the resources for finding properties just coming on to the market that you need to know about.
3. A trustworthy general contractor: This person will work with you to manage all professionals who will work on the property for you. This person should accept a lower cost for labor than the expected otherwise because they will be getting regular business through you.
4. A strong credit line and score: This is not a specific person but it will be one of the most important factors available to you as a house flipper. In short, you want to be sure that you have the means to invest in properties affordably, with low interest rates and with enough credit access that you do not have to put a lot of y our liquid assets into the transaction. If you are not at this point right now, seriously consider whether investing in house transactions is right for you at this point.
5. Investors: If you are just starting out in the world of house flipping, it is very important for you to have investors to help you to fund these transactions. You may not need them for anything but their money, but the more liquid you can keep your assets the better off the transaction will be.
Do you have these resources lined up? If not, now is a great time to start looking for them. Real estate investors need to be ready for any situation and these resources can help you to achieve success even in the worst of conditions.
Source: Elizabeth Harper
Dy Associates is an Oakland Real Estate company specializing in commercial, home and investment property in the Oakland and East Bay Area. We provide real estate services including buyer agent, seller agent, short sales, commercial and investment acquisitions, loan facilitation, hard money lending, financing assistance property management. Articles are provided as information only. We do not provide legal or general investment advice.
