4 Steps to Become a Successful Real Estate Investor at Any Age
If you are thinking of starting a successful house-flipping business, knowing where to start can be challenging. Whether you are looking for a career change, an exciting way to make some extra cash, or a project to help stay active in your retirement, house flipping can be a rewarding and worthwhile endeavor. Before jumping in, make sure you have a clear idea of the steps you need to take to flip your first property.
- Consider the Cost
Understanding what you can and cannot afford is vital when searching for an investment property. Experts recommend spending no more than 70 percent of the home's value after repairs, minus the renovation costs. Doing so establishes a budget and increases your likelihood of making a profit when it's time to sell.
Depending on your situation, you might need to secure a loan to make your initial purchase. Lenders can be discriminating when it comes to these types of loans, so it's a good idea to ensure your credit is in order before you start your search.
- Find the Right Property
Finding the right house requires motivation, research, and patience. Sometimes, it also requires some luck. There are countless listing sites to explore, and while you may find a good deal, they aren't the only places you can look. Check out local auctions and bank foreclosures to find underpriced properties and save on your upfront costs, or contact homeowners directly to ask if they are interested in short-selling.
When speaking to sellers, find out what condition the house is in and whether it needs any repairs. Ask any questions you might have so you don't run into any surprises later on. Knowing what to expect will help you make an informed decision, stay within your budget, and prevent losses.
And always consult with an experienced and knowledgeable realtor like Dave Futch who can help you find your dream Maui home!
- Fix It Up
Even houses in peak condition can benefit from deep cleaning and improvement projects. Many simple upgrades boost the value of a home, which allows you to get a greater return when you sell. Some low-cost upgrades might include installing new house numbers, planting colorful flowers, or replacing outlet panels.
Some properties need improvements or extensive repairs, ranging from a new coat of paint to a complex plumbing project. Don't forget to consider the added cost of any renovations your new house might need when initially deciding on an investment.
- Market Your Listing
Once your property is ready to go up for sale, you will want to market your listing so it can reach a wider audience of potential buyers. Distributing mailers, advertising on social media, and hosting an open house are effective methods of boosting your property's profile.
Mailers can be printed and handed out in your community or posted on local bulletin boards, and open houses are a great way to show off the work you put into the property. If you’re advertising on social media, a Facebook ad maker allows you to design your advertisements, with the ability to customize everything from the font to the color scheme. You can even add your own logo or branding to make your ads look more professional.
Regardless of your motivation, it's never too late to consider trying your hand at house flipping. While it does require a lot of effort, it's a fun, exciting, and fulfilling way to earn extra money while keeping busy.