Most people who visit Hills Estate do so with the aim of buying or renting a property to live in for the foreseeable future. However, those who wish to explore the property market in a little more depth tend towards house flipping as a way to make money from the properties they purchase.
Flipping is the act of buying a property, renovating it and the selling it on to another buyer with the aim of making a profit. While experience isn’t necessary to get started, it still takes a lot of talent and foresight in regards to the state of the property market to get right. Here are a few tips for budding house flippers so they have the highest chances of success.
Always Set A Budget
It can be easy to let your finances spiral away from you when flipping a house, especially if you buy a property at the upper ends of your budget, only to find that it needs extensive renovation work before it can be resold. This means you should always be aware of how much money you have and, ideally, how much you will need to spend to make the property sellable. Be patient and don’t jump at opportunities that may stretch your budget too far, as you may never see a return on the investment.
Work On Your Credit Score
You may need to secure a loan or something similar in order to purchase a house to flip. A lot of lenders have been tightening their bootstraps in recent years, especially in the wake of the financial crisis. This means you should have an excellent credit score before you consider applying for any loans. If you don’t have one you should really reconsider making the investment, as it is likely that you have a few other debt-related issues that need to be taken care of before you start spending in the property market.
Learn The Market
Is the property you are intending to buy in demand in the area where it is located? What are buyers and renters looking for from their properties? Is the property near local amenities and schools? How much does a property of this type sell for when it is liveable? These are all questions that can only be answered if you work on developing your knowledge of the property market. Work with professionals where needed and never go into a deal without understanding the potential outcomes.
Find Good Contractors
Once you have your house you need to get to work on it. There may be a myriad of problems, from structural damage through to electric and gas work. Your aim should be to understand what you can do yourself and to locate trustworthy and competitive contractors to do the rest for you. Spend some time researching the local contractors in your area and getting quotes to get an idea of what you should be paying. Don’t waste time on any who appear not to be providing the work you need at a price you think is suitable.
