Out of new houses sold in August 2022, the median sale price was $436,800, with the average sales price being $521,800. These days real estate investing doesn’t just mean buying a property and renting it out; fixing and flipping homes is also a great way to get into the real estate investment game. So, keep reading to find out everything you need to know about how to fix and flip a home successfully.
Take Some Time to Find the Right Property
Taking the first property you see isn’t a good game plan; you need to thoroughly research the property and area before you make a decision. Ideally, you want to spend the least amount of money, go through the renovation process, and then sell it for as much money as possible.
If you create an amazing home in a less desirable area, it might still sell, but it won’t make as much money as it would have in a more desirable area.
You want to constantly browse through auctions, foreclosures, and short sales to try and find the best match that still fits in your budget. It’s a good idea to chat with some real estate agents in the area to try to pinpoint exactly what you are looking for.
Try to Obtain Financing
When you consider financing, you probably think of a traditional loan made at a bank. Luckily these days, there are many different ways to obtain financing.
If the property isn’t in the best shape, many banks might turn you away, but fix and flip loans are specifically designed with this purpose in mind.
By obtaining the financing, you are giving yourself some breathing room as you aren’t only using your own money to get the project off the ground. While you need to spend money to make money, you don’t want to go into severe debt trying to flip a house.
Set a Timeline
When it comes to flipping houses, you need to create a timeline and stick to it as closely as possible. The longer you take to renovate and sell the property, the more fees you’ll end up paying each month.
While it’s a good idea to leave some breathing room, you want to sell the property as quickly as possible so you can move on to your next renovation project.
Understand How to Fix and Flip a Home
Knowing how to fix and flip a home is the first part of the battle. Without this knowledge, you’ll be floundering in the dark, trying to find a workable solution. The renovation process might take some time, but once your house is ready to sell, you’ll be glad you put in the extra effort to ensure your dream becomes a reality.
At CapSource we bring our industry-leading technology and comprehensive knowledge to the table. If you’re considering trying to flip a home, feel free to contact us today.