As an experienced real estate investor, I’ve bought and sold countless properties over the decades. From Southwest Florida to Minnesota, there are numerous properties out there with potential. And whether these previous investments were buy and holds or flips, I’ve gained a wealth of information into maximizing every situation. This combination of knowledge and strategy has given me insight into what works… and what doesn’t. And today, I’d like to share with you a few rules to flipping that might help you along the way if you’re new to the experience.
Run Your Numbers
If you know one thing about me, it’s that I love to run the numbers. In fact, I have several tools I’ve created for exactly this purpose. Why is it critical when flipping houses to crunch this information? This way, you can gain valuable perspective on what makes the most sense for any given property and whether it will work for you. Too often, I’ve seen new investors rush into a deal and lose money because they didn’t consider how it would work for them.
Formulate a Clear Plan and Path
Once you’ve determined if the numbers work in your favor, you want to sit down and plan. Many times, I’ve seen new investors check the numbers and start the process. What happens next? The project languishes for months on end, sometimes even longer. And during that time, they’re losing money. When it comes down to it, you need a strategy and a timeline for every single step of how you’re going to flip this property and get back your investment.
Hire reliable contractors
On that note, who’s going to help you flip your new investment? It can be tempting to want to do much of the renovations yourself. After all, you’ll be saving extra money, right? Wrong. In many cases, flipping houses require renovations that utilize multiple, diverse skills. And even if you have all the skills, you’ll end up spending all your time renovating, instead of searching for your next flip while your team works. So, do your research and bring on reliable contractors and build your team. It will make all the difference in the world.
Target undervalued properties in your area
You would think it goes without saying that you should target undervalued properties. But time and time again, I’ve seen new investors jump on properties with razor thin profits. While it’s perfectly natural to be excited and want to start the process, you want to flip a home that works for you. So, I recommend choosing an area and house type that you’re somewhat familiar with. This can help you see the potential that others may miss.
Are you a new investor ready to flip your first home? I’m more than happy to answer questions and if you’re in Southwest Florida, you can even attend one of my many seminars!
Terry Records
Broker/Owner
Records Results Real Estate
Residential Sales and Property Management Service