You’ve been thinking about taking the plunge and invested in hot Solano County real estate; or perhaps you’ve already bought some! Now you need to know how to flip the property and make the most from it that you possibly can. By following a few insider tips, you can get the maximum profit for your investment.
Before you buy
If you’re still considering properties, there are some things to consider before you buy that will help you turn a healthy profit:
1. Buy cosmetic damages, not structural
Especially if you’re new to house flipping, or if you don’t have that “handyman flair,” buying a property that requires structural improvements makes it that much harder to turn a good profit. Upgrading outdated electrical systems or foundation problems can become money sinks; so stick to properties that can be improved with paint, carpeting, better floors, and new appliances.
2. Have a backup plan
Things can change between the time you buy and the time you sell. The real estate market might take a dive, financing rules could change, or the local economy could tank. In some cases, it might be better to hold for a bit and even rent while you wait for things to cool off. Make sure you’ve taken all this into consideration and have an exit strategy.
Once you’ve made the purchase
Once you choose a property, your next step is to get it ready to flip. Keeping a couple things in mind at this point in the process will ensure you get the most for your property when it’s time to sell:
1. Keep your end buyer in mind
Take a moment to think about who your ideal buyer is. What type of people are looking to buy property in Solano County, and how much would they be willing to pay? How can you tailor your renovations to meet the price and expectations of the buyers you want to attract?
2. Choose your rehab team wisely
The right team will make all the difference in getting your home ready on schedule and within budget. Always work with a reputable contractor, make friends with a trustworthy real estate agent and property inspector, and listen when these experts give you advice. It’s good to build up a rolodex of specialists in highly skilled and technical tasks, so as you ask around build lists of contractors who you can call for furnace repair, electrical, plumbing, roofing, and finishing work. They’ve been around the block a few times, and they have advice worth hearing.
When you’re ready to sell
Here at the final stage you have two goals. Sometimes they work well together; other times they work against each other. On the one hand, you want to sell quickly, since every moment you’re holding on to property is money lost. On the other hand, you don’t want to sell for too little.
1. Look into cash home buying
When friends ask what you’re doing these days and you find yourself answering, “trying to sell my house in Solano County,” then it’s time to consider a cash home buyer. A good cash home buyer can usually settle the deal in just a few days, and instead of waiting for a buyer to get lender approval and roll through mountains of red tape, you can sell quickly for cash on the table.
2. Price your home correctly
The longer you hold the property once renovations are done, the more of your money you bleed out. You might think the smart move is to overprice your home so you have room to bargain with buyers, but this often backfires and buyers never show up at all. Take the time to look around the neighborhood and price out the market carefully before putting out a good offer that will attract buyers with competing offers.
Above all, don’t let the process get you down. If you’re new to flipping houses, there will be some growing pains; but once you power through, you’ll gain confidence and have experience to bring to the table next time around.