We have all seen the endless shows on HGTV and Bravo that show successful real estate moguls who are able to take a $400,000 home and put some paint add hardwood floors and maybe spruce up a kitchen a little bit and turn it around and sell it for $650,000 within a month, but is this reality? What should a new “flipper” look out for most? Here are some of the most important things to have when you are thinking about flipping a home here in San Diego;
1. Surround yourself with Experts. Being able to consult a Realtor at the drop of a hat is an important factor in becoming a great flipper, also other great experts to surrounds yourself with are contractors, accountants and a great stager.
2. Being “Handy” some of the best flippers in the business are ones who are able to do some of the small jobs themselves. Being able to paint, tile, and maybe even install hardwood flooring is a great skill to learn prior to becoming an expert flipper. But don’t worry if you aren’t keen to getting your hands dirty you will be just fine. Just make sure you aren’t spending the same amount on paint as you are on plumbing.
3. Make sure that you have patience. When it comes to flipping a home you can’t be impulsive and just decide on any home. The right numbers have to be calculated and you should wait till the price has become within your planned budget. This is where having a great real estate agent is key. They can find you properties right when they come on the market and also will run comps in the neighborhood to make sure that you are getting a deal and aren’t going to overpay.
4. The two things that you should focus the most on when flipping a cosmetically flipping a property is the kitchen and the bathrooms. These two areas of the home will give you the most ROI (Return on Investment) and will make the home easier to show to potential buyers.
5. Educate! Educate! Educate! Make sure that you educate yourself on the risks both financially and legally when it comes to flipping a home. Also becoming well aware of the particular market you are going to buy into is important as well.
Just remember that being sensible is key and starting small is a great way to see how your “flipping” career will grow!