House Flipping Guide For Beginners

House Flipping has been the best and fastest way to earn money in real estate for centuries. Some businesses are newly developed, but House Flipping is an ancient business model that was good even in the 80s. Building houses never stops because people can’t live without a proper building, and that’s why this House Flipping business has been famous for decades. Some build luxury apartments and later sell them, while some maintain a constructed one by adding extra beauty and then flip that house for profit.

So different business models are available, but how can beginners jump into this business? Every type of person wants to enter this business. Still, without proper guidelines, you can never win in this House Flipping business because investing money in the wrong projects can devastate your career.

This article is all about House Flipping. We’ll share some actionable tips you can take to earn handsome cash. Experience is what matters. You can invest your savings, but it’s useless until you get a good profit from them. So this article will state the 6 best tips you can use to flip your houses like a PRO and earn good cash in return. So let’s start our article with the basic definition of House Flipping.

What is House Flipping?

House Flipping’s definition is simple. You purchase a house that needs maintenance, you renovate that house, and when renovation gets completed, you sell that house for profit. That’s the simple business model of House Flipping, but it isn’t simple as it seems. House Flipping is challenging when things go out of control. We’ll share those challenges later, but first, let us share the business model of House Flipping.

House Flipping Process

We’ve already cited that we will share the 6 best and most actionable tips to gain the highest profit from the house you invest in.

1. Keep a Budget in Mind
2. Keep Those Funds in Your Pocket
3. Find The Perfect House Requiring Low-Maintenance Cost
4. Plan The Updates
5. Renovate The House
6. Take a Final Review For Your House and Flip

These are the 6 actions you need to perform when entering this House Flipping business. Now let’s dive right into its explanation. We’ll explain the process step by step, so open your notebook to note the steps you must follow.

Keep a Budget in Mind

Keeping a budget in mind is necessary because you can’t set a proper score. When renovating a house, you don’t know the expected expenses. You have to keep more budget in mind before jumping for renovation. Suppose you have purchased a house and started its maintenance. You can’t count the money that will be spent. So always keep more budget in mind when purchasing or renovating any property.

Find The Perfect House Requiring Low-Maintenance Cost

That’s the 2nd thing you need to do when investing in this House Flipping business. Finding these targets is difficult, but if you work hard, you will succeed in finding one. So work hard on finding houses requiring low-maintenance costs. To find such properties, you need to see the wholesale targets. Sellers willing to wholesale their properties are the best targets to pitch.

You need to be in touch with Cold Callers and Skip Tracers to benefit from this. Lert Skip Tracing is the best resource to follow when you need wholesale targets. These firms directly interact with wholesalers and investors. So approach them to find the best wholesale targets and visit those houses quickly.

When you have grabbed 5-10 wholesale houses, you must visit those houses to see the estimated cost for maintenance. Suppose you visited 5 houses and found 2 targets that will give more profit and low maintenance costs. Purchase that house and start renovating it. To renovate the house, you need to draw a diagram in your mind. We’re about to discuss this process now.

Plan The Updates

You have to plan the updates to know the estimated cost. In this example, you found 2 targets to purchase, renovate and flip. Planning the updates in these 2 houses is necessary. You must keep a pen and paper to note the things where renovation is required. Renovation is expensive, so it’s necessary to note down everything and calculate the required investment.

When you plan to spend the money, you can calculate the profit you will get from the property you renovated. So planning the updates is necessary because you get an idea of the expense you will bear when renovating that house.

Renovate The House

Finally, when you have purchased a house and calculated its renovation price, it is time to renovate it internally and externally. Renovating a house will require endless money, so you need to spend it smartly. Renovation work depends on the house. If a house needs painting, you need to contact a painter, but if the house requires washroom maintenance, you will contact a plumber.

So you have to face different people, but you have to do one thing: never compromise on quality. You are already spending lots of money, so why not spend some more to renovate those things well? Let’s say a house needs bathroom maintenance.

You have already spent thousands of dollars purchasing that house and hiring the plumber. Why don’t you spend some more dollars to install the best bathroom equipment? That’s the point you need to consider. When renovating any house, you must install the things of the highest quality because quality attracts clients.

So never compromise on quality. Either you repaint the apartment or fix its plumbing or kitchen issues. Always install quality material to get maximum output from the house you flip. That quality will add more rates when you are flipping those houses.

Take a Final Review and Flip

Now that’s the last thing you need to do. The last thing you have purchased a house and maintained well is the review. Ask your friends and family members to visit the house you maintained. Tell them that you are about to sell this property. Any more maintenance is required or not? If your friends and family give you a green signal, market your property for sale.

When your circle visits the house, ask them to check everything internally and externally. Getting a green signal from your circle is necessary because they are the ones who will be worried about investment. So get a green signal from them and once you get a green signal, then get a green signal from an unknown party.

Before marketing your house, you need to take reviews from experienced investors. Those already in touch with this House Flipping business will help you somehow. Let’s say you contacted an investor who does this House Flipping business. Convince him to visit the house you renovated. These House Flippers know the client’s intent, so they would provide great help. Once you have a green signal from investors, market your property for selling.

Conclusion

House Flipping is the best business. You can make a handsome amount with it. If you want proof, then read this study conducted by Attom Data. It clearly states that 50,000 houses in the US were sold in the first quarter of 2019. So how much money do those investors earn? You can’t count this. So stop listening to everybody and start doing. I hope these 6 tips will help you as a beginner, and you will be able to flip houses after reading them carefully. Till that, take care and be happy.