You have often heard about real estate FLIPPING and after many thoughts you are thinking very seriously about getting into this adventure.
This project requires the establishment of a well thought out plan and before starting it, we offer you a list of some tricks to increase your chances of success.
What exactly is a real estate FLIPPING? It is the process by which you buy a property for renovation and resell it in a short period of time to take advantage of it.
So, first of all, be carreful about the terms "short period" and "profits".
It’s a nice investment project that can be very lucrative, but it can also be very dangerous if you don’t follow certain rules.
In general, the traditional banks will not finance such a project and you will have to opt for other sources of financing.
Here are some tricks and rules that will prevent you from losing everything and avoid the FLOP and make a nice FLIP.
- Plan your entire project carefully as a true professional.
- Find the right financing.
- Conduct a pre-purchase inspection of the property with a contractor to target renovations.
- Have three different contractors soumissions on the work.
- Have a forecasted property assessment done to determine the value of the property after the work.
- Target homes for renovation in good neighbourhoods.
- Routinely supervise the work and find a knowledgeable or trusted person to support you and check the status and progress of the work.
- Know how to delegate.
- Be careful not to renovate too much and not to forget the neighbourhood and your target when you start the work.
- Do not forget the taxes, at the end.