Sawubona!
Here we are again tonight we will conclude the second chapter; without being too tergiversary we start immediately .... happy reading!
Find the Right Home to Rehab
The instant you have determined your scope of work and source of financing, the next step is to begin identifying the appropriate properties you can flip which will make you profit. Here, you need to put your timeline and budget into consideration and don't forget that no matter how well structured your plan is, it is still of utmost importance to locate the right property to yield the projected returns. Your major point of focus should be the neighborhood because you can always get a new property, but once you pick an area, you can't change it.
When choosing the appropriate property to flip, the following are a few vital factors to consider:
● Location of the Neighborhood: Pick a place that is not far from where you work and reside. This is because you may have to head to the site many times and you don’t want to spend all of your profit on fuel or transportation.
● Properly Maintained Neighborhood: It is easy to enhance the look of your property. However, if the neighborhood is one that is not maintained correctly, there will be nothing you can do about it, and you may end up chasing off prospective buyers.
● Proximity to Amenities: Choose a neighborhood that is close to amenities like libraries, parks, shopping, and restaurants. This will help draw buyers in and allow you to attach premium prices to your property.
● Research the Market: Find out how long properties stay on the market in the neighborhood. This will determine the duration of time you may have to wait to dispose of your property. If your aim is a quick turnaround, you will want to stay away from markets where properties sit for a long time before being purchased.
● Properties Without Structural Issues: Stay away from properties that have problems close to the foundation, no matter how good the deal may seem. This could include issues like sinking floors. You may end up spending way more than you anticipated correcting these issues, which may end up taking a bite into your projected profit.
● Size of the Property: Go for properties that are of decent proportions. You can break down walls to create more room inside the home, but it will be impossible to add additional space or a garden if there is no space to do so. Next, you need to run your numbers to determine if the investment is worth it.
Rehab
After purchasing the property, what you need to do is rehab or fix it. Be sure that the contractor you finally decide to work with is reliable and has the proper licenses. It is best to work with contractors you have had a prior relationship with or someone with excellent references. Always make yourself physically available during the project because no one else can keep track of how your money is being spent except you. If you are unavailable, feel free to delegate this to someone you can trust. However, you still need to make yourself available frequently during the rehab.
Also, exercise caution when choosing décor for the home. Don't go with what you like; instead, go with what is presently trending and is known to be alluring to lots of buyers. Your buyers have to find the home appealing, not you. If you rehab a property the right way, and no one knows of its existence, it may end up sitting on the market for a very long time without any buyer. That is why the next step of learning to market the property is equally important.
Market the Property
Fix a price, which is a little lower than market price to get fast foot traffic and interest. Don't let your greed take over when it comes to pricing because for every day the property sits on the market without a buyer; you are losing income. Take every step you can to market the property effectively. You can use flyers, list it online, provide a referral fee if someone brings you a buyer and so on. Most times, even if people don't want to purchase a home, they know others who would want to.
Create awareness right from when you are almost through with the rehab process. This will keep prospective buyers in anticipation even before the rehab process is complete. Place a sign in front of the home and do an open house. Be strategic with your promotion as many people purchase homes based on emotions. So advertise your home in a way that will trigger these emotions.
Stage the property as best as you can. Place furniture and tables and make anyone who walks in envision how the property would look as their home. If you are not very skilled at this, you can get the services of real estate agents around to help you out with this.
Flip the House
If you do everything the right way, you will be selling off your property for a profit in no time.
Having understood the steps in a rehab, let’s move on to the best ways to find house flipping deals.
And even today we have come to an end; I hope this reading will be useful and interesting.
I thank you for passing by here and for taking the time and I look forward to seeing you for the third chapter!
