Ok so today I wanted to talk about how to Flip a property in a volatile market. I wanted to touch on the reality shows out there which focus on flipping properties. I know many of you have seen these shows and wondered “hey I think I can do that”. And the short answer to that statement is yes, you probably can, but you might want to arm yourself with a little know how first.
See what many of these shows don’t show you, is sometimes these homes are in better locations than what you might be able to purchase in, or are at prices higher than what you can actually afford. Flipping a property in a volatile market is a very lucrative business if you know what to do and how to do it. These reality programs show you somewhat of how it is done.
However they don’t always show you the true nitty-gritty of what goes on behind the scenes. You need to ensure that you have enough money to not only acquire the property, but also enough funds to turn the property around quickly (hence why it is called Flipping). You need to ensure that you have the proper help as well. Make sure you have a reputable contractor working with you. Now if you’re pretty handy yourself, then I guess you have this area covered.
See sometimes you can purchase a property at a steal, and think “wow I can turn this property around pretty quickly and make a nice profit”. At least until you find out the property has structural damage that the seller did not disclose, or your cost of flipping is a lot more than you bargained for. It is always a good rule of thumb to have a contractor already on standby to walk thru a property with you, if you are able to do so.
Often times these properties are acquired sight-unseen, which is not always a bad thing once you are a seasoned flipper. But first-timers I would suggest having a contractor, or even the team which will assist you in flipping the property help with the property assessment.
Also first timers do your homework in the area that you want to begin your first flip. Know the property you want to flip, most good flips are known as bread and butter properties, at least 2-3 bdrms. Be sure to know what the properties have sold for in the past, based on their completed value, not what they look like presently. Find out if the locations are family friendly, know who your target buyer will be once the property is complete. So that’s my spill on how to flip a property in a volatile market, I hope this was informative for you.