What is Fix & Flip Real Estate Investing?
→ This is the strategy of buying a house, renovating it and selling it to a valuable gain.
The following are the Pro tips in Flipping the house for maximum profit:
- Don’t buy house with damaged mechanicals.
- Inspect the Property Before Making an Offer.
- Map Out Your Profit Margin Carefully.
- Plan for Different Potential Exit Strategies.
- Know Who Your End User is.
- Select Properties That Can Be Updated Quickly.
- Reach Out to a Reputable Hard Money Lender.
- Understand Risk Factors & Come Up With a Plan.
- Know the Estimated Cost of Your Flip.
- Build a Good Rehab Team.
- Price Your Home Correctly
- Know Which Improvements to Make.
- Don’t Try to Do Something Too Big.
- Don’t Make Unnecessary Improvements.
- Partner With the Seller.
- Choose the Right Market.
- Determine How Much Cash You Will Need.
- Take Care of All the Big Ticket Items & Do the Work Correctly.
- Update Bathroom Vanities.
- Add a Few High-end Features to Your Property.
- Buy the Worst House in the Best Neighborhood You Can Afford.
- Update the Walls, Ceilings & Floors.
- Plan Your Renovation Carefully.
- Study the Local Market.
- Take the Necessary Real Estate Courses.
- Do Your Due Diligence When Purchasing a Distressed Property.
- Leave room for unexpected costs.
Work With a Real Estate Agent Who Knows the Local Market.
→ Is when the house is put under contract and sold-as is to an investor.
Looking from each simpler definition, Fix and Flip investing needs a large sum of investment to start of. If you don’t have money to buy the property, pay for utilities, insurance, Attorneys fees, taxes, closing costs, etc… then consider wholesaling.
Although some experienced more success in Flipping, it’s just a matter of finding a good deal that determines what’s the best strategy to take.
I consider Wholesaling less stressful as it was a direct agreement between the seller and the buyer. It can be more manageable and profitable after all as one doesn’t have to actually invest. Wholesaling deemed as more beneficial especially when you hit a foreclosed properties wherein sellers can agree to sell below market value rather than affect their financial dynamics like the burden of taxes, mortgage, insurance and upkeep.