To flip a home means to buy it for a low price and then sell it for a higher price. When house flipping is done right, the investor can end up making a bundle. Before the 2008 financial crisis, many people flipped homes for additional income. Now with the housing market making a comeback, more people are beginning to explore the possibility of flipping homes again. The following are some basic tips for house flipping:
Skip homes that need expensive repairs
There is nothing wrong with doing cosmetic renovations, such as simple touch-ups, minor yard cleaning, and replacing carpets. But skip the projects that entail large financial investments, such as upgrading bathrooms and kitchens, or altering the layout of the home. Aside from the additional financial risk of investing more money into the home, it will take that much longer before you will be able put the home back on the market. With home flipping, time is crucial—it is important to act as quickly as possible when it comes to re-listing the property.
Turn it over
If you list the home quickly, your profit is much more likely to skyrocket. For example, assume you have $100,000 to invest in flipping homes, and you can profit $10,000 for flipping a home. If you sell one annually, your profit is 10 percent. If you purchase and sell four times throughout the year, your profit increases to 40 percent.
Understand the basics
Take time to know the value of your home. What amount can you sell the home for quickly? How long will it take you to get your home ready to be put on the market? How much would it to cost you to get the home up to speed? It is important to be able to answer questions such as these for successful house flipping.
Make sure you do transactions in areas where the job market is strong
An area with a high employment rate is key to real estate recovery and strong buyers. With low employment rates, property prices will continue to flounder. You need to invest in areas with people who are able to purchase your property.
Are you interested in flipping properties, but you need cash now to get started? Are you the recipient of a structured settlement annuity payment stream? If so, Peachtree Financial Solutions may be able to help. If you would like to sell structured settlement annuity payment streams for cash now, you can use your lump sum payout to purchase property, whether it is your first home or if it is property that you plan on flipping. Contact Peachtree Financial Solutions today to learn more about how you can sell structured settlement annuity payment streams for cash now.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.