There are a lot of talks these days about fixing and flipping houses as an investment. But what does that actually mean? How do you fix and flip a house? And most importantly, is it something that beginners can do?
In this article, we’ll answer all those questions and more. We’ll give you a guide to fixing and flipping houses, including tips on finding the right property, estimating repairs, and selling the house for a profit. So if you’re thinking about starting your fix and flip journey, read on!
What is “Fix and Flip”?
Fix and flip is the process of buying a property, making repairs or renovations, and then selling it for a profit. It’s a popular investment strategy, especially in today’s hot housing market. And while it may seem like a simple concept, there are a few things you should know before you get started.
First, fix and flip properties are usually sold “as is.” That means that you’re buying the property with the understanding that it needs work. With that said, fix and flip loans are available from some lenders, such as Instalend, that allow you to enjoy the benefits of fix and flip properties even if you have insufficient funds initially.
Now that we’ve covered the basics, let’s take a look at how you can fix and flip a house, even as a beginner.
How to Fix and Flip
There are a few things you need to do in order to fix and flip a house successfully.
- Find the Right Property
The first step in fixing and flipping a house is finding the right property. You’ll want to look for a property that meets the following criteria:
- It’s in a desirable location.
- It requires repairs or renovations.
- It’s priced below market value.
To find fix and flip properties, start by searching online listings and talking to real estate agents in your area. You can also look for properties that are in foreclosure or tax default. Once you’ve found a few potential properties, it’s time to start doing some research. Look at the recent sale prices of similar properties in the area. This will give you an idea of what the property is worth “as is.”
- Estimate Repair Costs
The next step is to estimate the repair costs. This is important because you need to know how much money you’ll need to finance the purchase and renovation of the property. To get an accurate estimate, talk to contractors or look at online cost estimators. Be sure to include a contingency fund in your estimate to cover unexpected repairs.
- Sell the Property for a Profit
Once you’ve completed the repairs, it’s time to sell the property for a profit. To do this, you’ll need to list the property for sale and find a buyer who’s willing to pay your asking price. You can list the property yourself or hire a real estate agent to do it for you.
If you’re selling the property yourself, be sure to price it correctly. Look at comparable properties in the area and price your property accordingly. You’ll also need to market the property effectively. Create a listing that highlights the features of the property and make sure potential buyers know about it. If you hire a real estate agent, they will handle pricing and marketing for you. But keep in mind that you’ll have to pay commission fees if the property sells.