There are many different television shows that make it seem extremely easy to flip a home successfully and not have to spend a lot of money to do so. While this is somewhat the case, there’s also a lot more that’s involved with the process.
Here are three important rules to make note of to ensure that you’re successful in flipping a home:
Build Your Team
It’s next to impossible to flip a home on your own, which means it’s extremely important and beneficial for you to put a team of specialists together who can help you with all of the tasks involved. Your team should include real estate agents, a real estate attorney, general contractor, CPA, and more. Your team will assist you with tasks such as finding a property, fixing it up, and ultimately selling it, all while you obtain some valuable experience from them.
Determine How Much Cash You Have
If you have plans to flip a home, you’ll obviously need enough cash to ensure that the job gets done. On the other hand, it’s also OK if you personally have no cash, as private investors and other sources can get involved on your behalf. After finding and purchasing a home to flip, you will then need to take the time to determine exactly how much cash you have in order to get the job done. You can even do this by partnering with someone to form a joint venture, who will fund the entire project while you complete the work.
Find a Property That’s Undervalued
If you’re sure of exactly where to look, you can gain a major advantage over any and all competition that you may have. Perhaps the best way to find an undervalued property is to have people call you whenever they’re ready to sell. This can be achieved through signs that you’ve likely seen in your own neighborhood of residence asking people to call a certain number in order to sell their “ugly home.” You could also engage in email marketing, direct mail marketing, and speaking to owners of abandoned properties.
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