Flipping houses is a great way to make money from real estate without making a long-term commitment. If you’re looking to get involved with house flipping, but aren’t sure where to begin, there are a few steps you should begin with. Before taking on your first project alone, make sure to follow this guide.
Step 1: Learning
Before you begin flipping houses, you should learn everything you can about the process. I suggest reading blogs and books, listening to podcasts, or even asking for some advice from a seasoned flipper. Make sure to take detailed notes during this process, as you will likely refer back to these notes several times throughout your process.
Step 2: Networking
While you’re learning all about flipping houses, you’re bound to come across some individuals who could help you in the future. Make sure to network with other flippers, contractors, and even agents. You never know when a pipe will burst and your relationship with a plumber can save you.
Step 3: Legalities
After finding out all of the information about flipping and meeting people who can help you, make sure to research the legalities of flipping in your area. This can include everything from zoning codes to the types of mortgages available for flippers. Make sure you note the permits you might need in the future, just so you can be prepared once you find a property.
Step 4: Searching
Now, it’s time to find a house to flip! Look in your area and search for a property that fits your vision. If you’re starting out, you might want to focus on a standard, single-family home. Make sure to consider how long it could take to resell the property, as well as any special notes that could affect the flip, such as extra zoning ordinances.
Step 5: Renovations
Once you’ve paid for or financed your new project, you can start renovations. While some homes may just need a fresh coat of paint and new carpet, others might need to be gutted. Make sure you tap into your network and contact professionals to help you in areas that could pose a safety risk.
Step 7: Reselling
After you have a house fully renovated, you’ll have to finish the process by finding a buyer. Keep in mind that this step could take several months. After you find someone interested in buying, finish the paperwork and you’ll have completed your first successful flip!
Flipping a house is a project that should not be taken lightly, as there are many steps in the process. That being said, it can be an immensely rewarding experience and can start you on a journey of building wealth in a hands-on way. Just make sure to follow these steps and you’ll be a pro at flipping in no time.