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Home Flipping 101

Posted by Jeff Trounsell (jefftrounsell) on Aug 18 2012
Blog >> August 2012

Home Flipping 101

1) Know what features and amenities your potential buyers are looking for.

 

2) Don't be afraid to make low offers. No today doesn't mean no tomorrow.

 

3) Talk to a real estate agent about what you are planning to do to the property. Determine what the property will sell for after your repairs are completed.

 

4) Time is money. Use your time and money wisely.

 

5) Put your budget down on paper. Compare your actual costs to your budgeted costs so you can see where the differences occur.

 

6)Understand all the costs involved in the transaction. These include interest, repairs, closing costs, holding costs and sales commission.

 

7)Have extra money in reserve. If you plan to use every penny that you have, you will be in trouble.

 

8) Have your funding in place before you look for a deal.

 

9)Flipping houses is a business. You have to make money to stay in business.

 

10)Dream big, but start small and then work your way up to bigger projects.

 

11) Know your area before buying. In today's market, time is of the essence! Buy, fix and flip fast.

 

12) Have a time-line. It's an important way to monitor your progress and keep your work on schedule.

 

13)When renovating, be selective and concentrate on features most important to buyers. For the biggest returns, focus on the kitchen and bathrooms-areas most buyers find significant and consider strongly in their decision to buy.

 

14)Know your numbers. Accurately estimate your renovation costs and the market value of the property. Don't over value the property with too many or unnecessary renovations and do not over price the selling price. Price it right!

 

15) Do not get emotionally attached to the property. Overwhelming personal tastes are a no-no. The renovations need to be attractive to your potential buyers, not you. Cover the basics and move on to the next property.

 

16) Don't be scared to get your hands dirty!! You can save time and money by doing the basics on your own.

 

17) Brush up your negotiation skills.

 

18) Don't be afraid to fire anyone!!

19) Knowledge + Business Systems + Action = Success!

 

20) Marketing to find good real estate deals is the most IMPORTANT part of the business.

 

21) Consistently educate yourself on the real estate business.

 

22) The goal is to work in your business for a short time period and then hire someone to replace you so you can work on your business.

 

23)Real Estate investing is a TEAM sport and the stronger your team the more successful you will be.

 

24)Find someone who is successful in the real estate business and model what they do. Imitate then innovate.

 

25) Failure is the first step towards real estate success.

 

26) Don’t let fear stop you from living up to your true potential.

 

27) Real Estate Investing is a business and should be treated as such.

28)Today's buyers are savvy! If you are charging FULL RETAIL for your flipped real estate property, it must be mechanically sound and look great! The floorplan should have a nice open flow and the kitchens and baths must be totally updated to retail grade, not rental grade. The house's exterior should reflect the updates on the interior with nice landscaping and eye-popping curb appeal.

 

29)Respond (and not react) to the inevitable bumps in the road when real estate flipping. Know that things WILL go wrong. It is how you react to those things the go wrong that count when reale state flipping.

 

30) Find someone who is experiencing success right now in real estate flipping, find out what they are doing and then do it.

 

31)The way to make the best profit on any real estate deal is on your way INTO the deal. If the seller won't sell at the price you need for your desired profit, walk away.

 

32)If you sit on your assets and wait for the time to be "right", you will never own any real estate.

 

33)There is always something to be learned in real estate flipping/investing. Continue your education.Take a real estate flipping class or seminar from someone who has been in the business for a long time AND someone who has been successful in 2 different towns.

 

34)Curb appeal is everything!!! As a rule of thumb, be prepared to allot 8-10% of your real estate flip budget for landscaping. If you"re going to spend $50k on your renovations, then you better plan on $5k for landscaping. If you follow this rule, you can usually expect a 2-2 1/2 times return on your real estate investment. Trust me, I have seen the same level of renovations on similar homes while the one with the pretty lawn sold quickly....the other sat on the market.

 

35)Go Green!!! Whenever possible, use fresh sod lawns. Nothing makes a yard look better than a newly laid sod lawn.. If your landscaping budget is limited, I suggest you put it all into the sod. You can get the most bang for your buck and the overall appearance will stand out above the rest.

 

36)Size Matters! Make sure when you choose your plants that you know what the growth habit is for each plant. You do not want to put a plant that grows 10 feet tall in front of a plant that grows only 2 feet.

 

37) Keep it Simple! I cannot emphasize enough to keep it simple. Don't go overboard on your landscape designs. Simple, clean and green is usually best.

 

If you have any questions on flipping feel free to contact me!


Last changed: Aug 17 2012 at 5:55 PM


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