Easy, no! Profitable, done correctly, yes! So what does it take to make good money on a flip in this market? First of all, work with a great realtor to help identify a desirable neighborhood or a neighborhood on the rise. I like to focus on the broadest market possible; family homes, level backyard, close to good schools. Find a home that has no curb appeal, I mean, it’s just ugly. Successful flippers can see past the neglected yard, dirty and outdated interior to the solid structure, awesome layout and future curb appeal. Know your numbers on what you need to buy it for to make a profit and negotiate ruthlessly. Your realtor should have sharp negotiating skills and excellent market knowledge to help you achieve a successful outcome. Your goal should be to purchase it at a price that allows for renovation, financing, legal, accounting and commission costs, plus profit and bringing it back to the market for less than $600,000. If you don’t get the price you need, walk away and find another home.
So now you own the home and time is money. Tick tock, tick tock. You have already lined up the tradesmen, permits and financing, it’s time to get to work. Religiously follow the “Golden Rule” of every flip, know your buyer and control your costs. Focus on areas of the home that invoke emotion such as an updated kitchen, bathrooms and open living area infused with natural light. Aim for impact without going overboard. A good realtor can advise you on where to invest your money wisely and assist with staging the home to create that all important “WOW” factor.
Stunning photography, virtual tour and a social media plan guaranteed to generate a buzz in the market has been completed, price has been strategized and you are ready to list. Announce your home’s exciting return to the market with a VIP Open House and a multi-media marketing blitz.
Because your home looks fantastic and checks all the buyer’s boxes, you receive an accepted offer. Congratulations, your home has sold at a profit. You are now an experienced real estate investor ready to search for your next “diamond in the rough.”