Interested in making money in real estate? One of the most popular ways to do so is through fix and flips. In a fix and flip, you buy a property, make renovations, and then sell it for a profit. But how do you get started? FlipCo Financial has tips for you to get started.
1. Get Educated
The first thing you should do if you’re interested in real estate investing is get educated on everything you can about flipping homes. There are thousands of free online resources to educate you on what you need to know about getting into the fix and flip game. The best investment you can make at first is the sweat equity of learning truly how flipping homes works and the real estate market.
2. Do your research.
Before you start buying properties, it’s important that you do your research and understand the market you’re entering. What kind of properties are selling well? What kind of repairs do these properties need? How much can you realistically expect to spend on renovations? Once you have a good understanding of the market, you’ll be in a much better position to make profitable investments. Make sure to take notes about where is the best place to buy property in your area and work with knowledgeable people that can help guide you in your learning process.
3. Get financing in place.
Fix and flips can be expensive, so it’s important that you have the financing in place before you start looking for properties. Talk to your bank or a hard money private lender about getting a loan for your fix and flip project. That way, you’ll know exactly how much money you have to work with and can avoid over-leveraging yourself. FlipCo offers great fix and flip loans with good terms to get started on your investment.
4. Find a good real estate agent.
A good real estate agent will be an invaluable asset as you look for properties to flip. They’ll be able to help you find properties that fit your budget and meet your criteria. They can also provide guidance on what kind of repairs a property might need and how much those repairs will cost. Real estate agents often work for free when it comes to buying properties as well. Don’t miss this valuable tool when getting into buying your property.
5. Make sure you have enough cash reserves.
Even if you have financing in place, it’s important that you have enough cash reserves to cover any unexpected costs that might come up during the course of your project. Having cash reserves will give you peace of mind and help ensure that your fix and flip is successful. If you are getting money from hard money lender, it’s important to take this into account when you are calculating how much funds you need to invest.
Fix and flips can be a great way to make money in real estate—but only if they’re done correctly. By doing your research, getting financing in place, finding a good real estate agent, and making sure you have enough cash reserves, you’ll put yourself in a much better position to succeed with your fix and flip project. So what are you waiting for? Get out there and start flipping!