Flipping a house involves buying a distressed piece of real estate, renovating it, and reselling it for a profit. Since most homebuyers are looking for move-in ready properties, flipping can be a lucrative real estate venture. Below, discover more about this moneymaking opportunity with a general overview of the flipping process.

How to Flip a House

1. Research the Market

First, have a general idea of where you want to invest your money. Consider the budget you have to work with and use this as the starting point.

For instance, if a flipper has a budget of $30,000 for the purchase of the home, excluding renovation costs, they should look for areas where this is a more realistic home price. Drive around, talk to realtors, and see what your budget will get you in various neighborhoods and markets.

2. Meet With Real Estate Consultants

Once you've found a property or at least narrowed down your search to a specific neighborhood, meet with a real estate consulting firm. Discuss your goals and budget and get their advice and guidance.

They will help you design a plan that takes into account every critical step in the process, from initial paperwork to legal ordinances and regulations. This stage shouldn't be overlooked; flipping encompasses many different legal, real estate, and safety matters that must be considered.

3. Buy a House

If you need financing, make these arrangements first by getting preapproved for a loan. Hire a home inspector to perform a comprehensive evaluation of the state of the property.

With the information they provide, you can look for contractors to start work once the sale is finalized. Make an offer on the home, negotiate as necessary, and close on the sale.

4. Renovate

The renovation process should ideally consist of high-quality work in the shortest amount of time feasible for your budget. Remember that every month you own the home, you're paying interest, taxes, and other fees on the property.

Also, bear in mind that some cushion is necessary when planning renovations; take into account inclement weather or unexpected problems that might delay construction.

5. Sell

List the property with a real estate agent, explain what it has to offer, and make sure you're asking for a price that brings in a nice profit. You'll likely have to compromise a little; that's just part of selling a home. Flipping a house takes months of time and labor, so it should grant you a modest profit.

 

When you need guidance with planning your flip, contact Guru Management, LLC. Since 2005, they’ve been providing real estate consulting services to the Greater Houston, TX, region. They have long-standing connections with local construction firms and other professionals to ensure your flip goes as smoothly as possible. Call (713) 447-2552 or visit their website to schedule a consultation.