All new things can be a little frightening or intimidating at first glance. This is definitely true when it comes to flipping houses. After all, money is at stake! During your first property flip it is normal to feel at times that maybe you have gotten in over your head. The truth is, most rookie home flippers take more than a few flips before feeling comfortable and confident with the whole process. Many first time home flippers make very little, if any real profit on their first property flip so if this is you, don’t feel so bad. Write off that first disaster flip, your get rich quick scheme. Chalk it up as a learning experience. Now get out a pen and pencil and take some good notes. We’re going to have you back up on that horse in no time, ready to enter into your next flip with newly learned lessons from the pros and a positive attitude of complete renewed confidence. Let’s start at the beginning. Whether you are getting into flipping houses as a real estate investment venture, for the sake of building a nice comfortable lifestyle or for an additional retirement income, learning, understanding and mastering the ABCs of flipping houses can help you avoid costly mistakes made by many, many, many first time flippers.
Understanding Home Appraisals
Appraise. You need to have a proper appraisal performed on the house you intend to flip and compare it to other houses in better condition and of similar size and style within the neighborhood. You do not want to buy the best house in the neighborhood, in fact it is best if you can find the neighborhood eyesore and turn it into a competitive house in the community. Now we’re talking about getting the most out of the money with invest. More importantly, you want the appraisal to reveal the actual value of the home now as compared to the price you are paying. A very important step that many flippers skip is not talking to the appraiser about what the home would be worth with the improvements you are planning to make. Pick the appraisers brain! Ask him, what, in his eyes will raise the value the most. He’s the expert! He’s seen it all. Flatter him a little and keep him talking as long as possible. All his tips mean more profit in your pocket!
Financial Risks and House Flipping
Bold Moves. Sometimes it takes bold moves to make the impression you want to make. The decision to flip houses is a bold move in and of itself and while you do not want to necessarily enter into risky waters you do not want to play it too safe either. Be cautious with your financing and guard your expenses and stick to your budget well but make the changes that will catch the eye of the next owner for the property. Dare to impress!
Work with a Professional NJ Realtor
Can do Attitude. You absolutely must believe you can do this in order to get it done. A house flip is not an undertaking for the timid or those that lack self-confidences. You will need to stand up to your contractors, inspectors, and even some vendors in order to get the best price and the most bang for your buck. In other words you need to believe in yourself and what you are doing in order to get it done. Listen to the advice of those with more experience and expertise, work with a trusted professional NJ Realtor, especially when it comes to structural issues within the home and bringing the property up to code or dealing with complicated wiring.
The Mind Set for Flipping Houses
Determination. You must also be determined to see your project through to completion. It takes a certain sort of pigheadedness to get through the first few flips. It should be stated here that flipping houses is certainly not an easy stress free way to make a living. It does have the potential however, to be a highly profitable way to make a living and that is what most potential flippers are looking for. If you want those profits you are going to need to push yourself out of bed even on those mornings when you feel as though looking at the property in question is going to make you wail, moan and pull out your hair.
Excitement. This may be the most necessary of all ingredients. You will find that excitement is in short supply many days, like when the plumber brings bad news. But you must find a way to recapture that initial excitement you had when you first decided to flip houses or when you first laid eyes on your intended gold mind of a refurb. Enthusiasm may be the only thing that sustains you, when you learn that a solid weak of rain is forecasted for the weak the roof was supposed to go on.
Don’t forget to set daily goals and hold yourself accountable to those goals. If you don’t reach your goals for the day it can set the entire project back by as much as a month depending on the goals and what has to be rearranged as a result. Stick to your timeline and your daily schedule in order to avoid potentially costly delays in time and money.
Curb Appeal and Flipping NJ Homes
Don’t neglect the exterior. Curb appeal is what brings buyers into the property. If you spend all your money, time, and effort making improvements to the inside of the home you will have little left to make the outside appealing to potential buyers. A home buyer is in the market for the entire package. A home that looks run down on the outside leaves the impression of being neglected on the inside and many potential buyers will never walk inside if the outside looks forlorn. We have to peak their interest when they are driving or walking past first and foremost!
While many people have very specific dreams of enjoying the bountiful profits that can be made from flipping houses very few people put too terribly much thought into the process or any formulas that might be pertinent to success when it comes to flipping houses as a real estate investment venture. It’s a business, treat it like one! Put everything to pen and paper and plan it out carefully before you begin. Then stick to the plan!
This is a small start on the ABCs of house flipping and real estate investing. I hope it was helpful.
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