Weve all heard of house flipping and weve also heard that people can make a lot of money from it. But that doesnt mean that we actually know what it is – or how to get started with it. Heres the low down on house flipping so that you can make it part of your life and – more importantly – a significant part of your income
WHAT IS HOUSE FLIPPING?
Put simply, house flipping is owning a piece of real estate for a short period of time, for example six months to a year. During that period of time, you will quickly improve the house so that you can sell it on for more money than you paid for it. The most lucrative house flips take as little time as possible. If you feel a little lost theres plenty of advice online, on sites like www.flippinghouses101.net – there are lots of people who have done house flipping for years and are more than happy to pass on their expertise.
WHAT DO I NEED IN ORDER TO START HOUSE FLIPPING?
First of all, you need some capital. Whether thats from selling your own property, raiding your savings, through a bonus at work or through inheritance, that doesn’t particularly matter. The crucial thing is that you don’t allow yourself to get into any financial difficulties as a result of house flipping. Secondly, you need some DIY skills you don’t want to have to pay handymen to do everything in the house before you re-sell it. Obviously there are some things that require specialized skills and it might not be a good idea to do them yourself, like creating new plumbing systems or rewiring a house. Its a good idea to find an experienced electrician or plumber in Los Angeles (or wherever you’re located) to do those things, or you might risk causing your house to flood or getting injured from an electric shock.
However, its good to understand how to do the basics of home improvement yourself. That might include having skills like being able to strip down floorboards, install shelves and closets, and paint walls well. You want to make sure that you know how to make a house look good – and that you have some interior design skills so that you can turn it into the kind of place that a buyer will want to move into. That means that you need to decorate the house in a neutral style so that people can imagine putting their own designs and ideas in there.
WHAT ELSE DO I NEED TO KNOW?
You need to make sure that you have your financial situation fully figured out – you need to know exactly how much its going to cost to renovate the house and how much you might end up getting for it when you sell it on. That means that you need to have done your research both in home renovation and in the area that youre planning to work in – look at the area around the house before figuring out who might buy it. For instance, if its near elementary schools then you need to make sure that the decor is child-friendly and would suit a young family.