If you are among the many people who want to start house flipping, you probably realize that there is a lot to learn. House flipping has become a big business, popularized at least in part by shows on the HGTV network and spurred by today’s hot real estate market.
What is House Flipping?
House flipping is simply the process of finding properties that may be distressed or greatly undervalued, then fixing them up to sell them for a profit. These properties are typically found at property auctions, or via short sales or foreclosures.
How to Start House Flipping in Less Than 10 Steps
First, know that house flipping takes money, skill, and effort. Second, know that it comes with some financial risks. And third, make sure that you have the skills and the patience to operate this type of business because it isn’t a passive hobby.
Follow these 7 steps to start house flipping to improve your likelihood of success and reduce your risk:
• Create a business plan and a budget. The business plan should reflect the number and scope of projects and renovations that you want to undertake. It should also include the timeline needed to get the work done and the project(s) sold. The budget should include what funds you have available and what financing assistance you will need for the project(s) as well as funds for any unanticipated costs.
• Plan to assemble a team to work with you. That team may include a lender, a real estate agent, a contractor, a plumber, and an electrician.
• Find your financing sources and prepare to qualify for funding.
• Find the right house to flip. Inspect it carefully to avoid buying a money pit.
• Buy the property. Seek a good profit-oriented price.
• Do the renovations, not overspending on renovations that don’t matter.
• Sell the property for a profit.
Seek Expert Financing Assistance
Contact Signal Peak for a wide range of financing solutions. We provide great financing options to help you realize your dreams.