5 Things to Consider Before Flipping a House
It’s hard to flip a house (buy a house and do repairs in order to resell it at a higher price) because it’s like you’re running a different business. Even though you know what you’re doing, you still have to fully commit yourself to become successful or end up with a meager profit.
If you feel like jumping into the flipping business soon, here are five important factors to consider.
1. Balance Your Portfolio
Before you start flipping a house, you need to first define your goals; most of the time, flippers want a high-profit margin in every deal. Other flippers, on the other hand, want to reinvest their profit every time they close a new deal. A balanced portfolio allows you to look at different markets and explore more opportunities.
2. Always Look For The Next Deal
Getting a new deal is great! That’s the goal of most flippers. However, you don’t have to place all your time and effort in one basket. Keep an eye on your current project, but also make time to look for the next one. To multitask, build your own team that you can depend on.
3. Manage Your Time
Flipping requires commitment. It also takes a great deal of time to secure the funds, to close the deal, and to pull permits of any property. In this case, you have to be willing to balance your flipping business and whatever else is happening in your day-to-day life.
4. Engage in Marketing
Work with local wholesalers and implement a marketing campaign to generate the best deals. In order to maximize your bottom line, you will need to obtain properties with deep discounts. Network and negotiate!
5. Build a Good Team
Find the right people that can help you supervise your current projects and close more deals.