DO YOU HAVE WHAT IT TAKES?
Northeast Indiana’s housing market has been in the national spotlight due to the recent HGTV program featuring local house flippers. House flipping has been growing in popularity over the last decade due to the potential for great profit, but it can also be a risky business. There are a few things you should have going for you before you get started.
Do you understand the market value of the home you are hoping to flip? When purchasing a home, either to live in or to rehab and resale, location always matters. Houses in desirable school districts will sell more quickly. An experienced Realtor® can help you determine the best location for a flip in your area.
Making a Profit
Do you have available home financing that will make your venture profitable? You will need to be well educated on all of your financial options and obligations before you get started. It is beneficial to buy a home that is below market value. Profits are usually made in the front end of the deal which is why having an experienced real estate agent to help negotiate a good deal is so important.
Do you have skills you can put to good use renovating your flip? The real profit in house flipping comes from sweat equity. If you have to pay a professional to do every bit of work from hanging drywall to installing a kitchen sink, the probability of making money on your investment will be significantly reduced. In the end, it is important to remember that this is a business.
Make decisions as an investor, not simply the homeowner in house flipping.
One of the most important parts to any new endeavor is making sure you have the knowledge necessary to make it a success. The experts at Mike Thomas Realtors® are a priceless resource of information, professional vendor contacts, and advice for any potential house flipper. Contact us today to get started.