Guidelines to Flipping Homes
Posted by admin in How To Flip
At first glance or to the uninitiated, this may sound funny. Some flip burgers and some flip “houses?” As you read further you’ll find that it is a whole lot more profitable. Owning their own home is the dream for many, if not all Americans.
Sometimes through unscrupulous bankers and mortgage lenders people are convinced to buy homes they cannot really afford. A few years down the line, the home they have grown to love has them in debt that they can’t escape from. Their house goes on the market (the real estate market) at a price that is well below what it is worth. The family is left in bankruptcy.
Some people observing their sad situation feel pity or empathy for them. Some give them a fair offer on the sale of their house so they can avoid foreclosure. This is a way out of paying bankruptcy fees and attorney fees, etc.
Some investors seek out situations where they can buy a home that’s being foreclosed on for a really low price, then do a little bit of work on it, sometimes only a coat of paint and some landscaping, and sell it at a much higher price. When flipping a house, the new seller has the advantage of controlling the paper.
By adding a simple “or assigns clause” or 60 days to find a buyer or “contingent upon financing” the person flipping the house buys enough time to find the seller and realize a nice profit spread.
It could be as simple as a “honey dew” situation. “Honey - do buy this house - I really love the (kitchen) (backyard) whatever feature she has focused on. Smile and as soon as they hear another buyer is interested, they’ll be willing to spend the extra $_________ it takes to obtain the property themselves.
It may be helpful for an investor to come along and buy a home before it goes in to foreclosure.
The fact is a house may be the most expensive item most people will ever own. Getting the best and lowest value for their money is just smart. By the same token, if someone (the investor for example)is knowledgeable enough to estimate the cost of rehabbing a building, thereby allowing him to make a good profit and a fast profit, then they stand to make large sums of money quickly.
When considering a house to buy and “flip” for your own profit, there are practical things to consider. First of all, the most obvious would be the expensive things such as a roof, a new furnace, and rewiring that is needed.
You would want familiarize yourself with the building codes in the area and with any permits required to make renovations. Then look at your own abilities to determine how much of the renovations project you can do on your own. Can you do plumbing for example if that is needed? Wiring must be approved by a licensed electrician in most places. If you can, talk to some of the neighbors to get an idea of what type of neighborhood it is. For example, are you planning to offer it a family with children? They would need to know if the schools in the area are good.
There is of course, painting, plastering, landscaping and a dozen other little chores that will give the house a sparkling new look. Be prepared to pass a safety or any other type of inspection that is required and - before you know it, you will be “flipping” your very first property.
There’s no limit to the amount of money to be made - even on your first try. The family losing their home is no worse off with you than without you and possibly better off financially. The new homeowners are very happy. And you, of course, are smiling on your way to deposit the results of your first successful venture into your bank account.
George Christodoulou,
If you have questions about house flipping or would like more guidelines to flipping houses, visit, http://houseflipblog.com for more information about house flipping.
You can also ask your questions about house flipping and have them answered by experts in the field.