5 Tips For First Time House Flipping

house flipping

If you’re ready to take the plunge into fix and flip real estate, there are a few tips that can help you have a successful first experience. House flipping is an exciting endeavor, but it takes knowledge, planning and patience to flip a home without going over budget or making costly mistakes. Here are five essential tips for first time home flippers.

  1. Research your area: Before you start fix and flip projects, familiarize yourself with the local real estate market and neighborhood trends in order to make informed decisions on which properties are worth investing in. Do plenty of research before committing to a fix and flip project – think about the potential market value of the property once renovations are completed, compare prices of nearby homes, research demographic details about the neighborhood, and inspect any permits or restrictions that may be in place.
  2. Set a budget: Establishing a fix and flip budget is essential for tracking expenses and staying within set financial boundaries. Deciding how much money can be invested upfront will help you avoid going into debt during the fix-and-flip process. Determine the total cost of fix-and-flip projects and factor in potential repairs and renovations, contractor fees, taxes, home staging costs, real estate agent commissions and closing costs. Having a budget will help you tremendously if you are looking to use hard money loans or third party financing.
  3. Create a timeline: Create a fix-and-flip timeline to plan out each step of the process. This includes researching properties, finding contractors, doing renovations and putting it on the market. Make sure you leave yourself plenty of time to complete all tasks within your fix-and-flip timeline so that you don’t get overwhelmed with last minute changes or deadlines. Having a quick timeline is best when it comes to these real estate investments. The faster you can flip a home the more profit you will pull.
  4. Hire professionals: Enlisting professional help for fix and flip projects is essential for achieving success as a first time home flipper. Consider hiring a real estate agent to help you find fix-and-flip properties and find contractors or handymen who specialize in fix-and-flip work. Working with experienced professionals can save time, money and stress in the long run. Don’t try the do-it-yourself approach on your first project.
  5. Stay organized: Writing out fix and flip projects, creating timelines and keeping records is vital for staying on top of fix-and-flip tasks. Keep all documents such as permits, invoices, contracts, receipts and estimates organized so that repairs are completed correctly within budget and timeline parameters. You will thank yourself later if you learn the art of staying organized in these projects. The more organized you are, the more you can do.

Fixing up a home can be both exciting and overwhelming at the same time. The tips outlined here are designed to help first time home flippers have a positive fix-and-flip experience. Researching your area, setting a budget and timeline, hiring professionals, and staying organized are all important steps to achieving success in fix-and-flip projects. With adequate planning and knowledge, first time home flippers can create beautiful houses that will add value to their neighborhood and make them a profit.

Fix and Flip with FlipCo Financial

If you are looking to get into real estate investing, our team would love to work with you on securing your property and having a successful flip. FlipCo financial offers private funding and hard money loans for first time investors along with education and help in your real estate journey. Contact us today for more information on our offerings.