By: Joshua Campbell
6 Steps To Successfully Flip A House
Tags: knowledge broker, knowledge broker real estate, moving, relocating for moving, toronto real estate, newmarket real estate, new homes, new condos, investment property, home flipping, flip a property
If you have a passion for home renovations, interior design, and real estate, house flipping is the perfect investment opportunity for you. It does involve a lot of work in a relatively short time period, but it can be a great way to make an income, especially if you are passionate about it. Plus, in order to succeed, all you really need is access to funds from the start and the ability to oversee all repairs and renovations. To give you a better idea of what to expect here are the 6 steps to flipping a house.
- Set A Budget and Line Up Your Funds
As we said before, the key to success is by having funds available from the start and staying on budget. House flipping is a business and each house you flip needs its own business plan. Each home needs to have a budget, timeline and project projections. For your first home flip stick to cosmetic updates such as the kitchen, bathroom, landscape, new floors, new paint, and new fixtures. These will cost you less money than renovating a house that involves structural or mechanical problems. If you are taking out a loan, have the funds available before you even purchase the house. The last thing you want is your offer to be approved and not have the money to pay for it.
- Connect With A Real Estate Agent
Amateur house flippers believe they need to act as the real estate agent too. This might save you 2.5%-5% in commission costs but require more of your time and effort. You should be spending your time overseeing and executing the complete transformation of a house. Work with a real estate agent to help you find the right neighbourhood based on your budget and potential profitability. They will be able to guide you throughout the buying and selling process.
- Connect with Contractors
Renovating a house is a big responsibility and you will need help to complete it. Connect with local contractors who can provide you quotes on properties before you even buy. Your real estate agent will also be able to help connect you with electricians, roofers, painters, and plumbers. Build your network of reliable people from the start as they will be able to help you with all your future home flipping projects.
- Find a House and Buy It
Based on neighbourhood recommendations by your real estate agent you should start looking for your investment property. Buying a house to flip isn’t like buying a home to live in, you need to look for properties with good bones at a good price. You will need to be patient and visit many homes before putting in an offer. We recommend you look to buy in older neighbourhoods that are up and coming but are not yet the most desirable and are in need of renovations.
- Renovate The Property
Congratulations you have bought the property! What’s next? First, bring in a home inspector to inspect the house for any surprises. Next, bring in your contractor and get some more accurate quotes for the renovation. Once you have the numbers, get to work. The faster you can complete the project the faster you can sell it and pay off your loans. Every day will cost you money, that’s why having a detailed timeline as mentioned in #1 will help keep you on track and on budget.
- Sell it
Now for the easy part, selling the property. Have your real estate agent come through the house and start the paperwork. During your initial discussions, you both should have an idea about the listing price. Once you both have agreed on a final price the rest is in the hands of your agent. Your real estate agent will market, stage, photograph and sell your investment property.
If you are interested in flipping houses and want to know how Knowledge Broker can help you invest in your first property click here.
At Knowledge Broker, our goal is to create an open-source of information for all our clients. We want to ensure that, at the end of the day, they get exactly what they want and what they need. If you know someone who could use our help or services please put them in touch with us or send us their details using the contact information below. And before you go, click here to take the Knowledge Broker Quiz and see exactly what we can do for you!
JOSHUA CAMPBELL (@knowledgebrkr)
Real Estate Broker
Coldwell Banker The Real Estate Centre, Brokerage
joshua@knowledgebroker.ca
249 Avenue Road • Newmarket, ON L3Y 1N8
289.231.0001
