Are you that person who watched HGTV and other channels with shows on home renovations and flips…and thinks? I wish I could do that! Well you’re not alone. So where do you start?
We’ll save the where do I get the money for another post. Let’s assume you have the money to buy a house. Here are three tips to get you started…
- Have a vision for what you want all of your flips to look like prior to buying. Pick out paint colors, carpet styles/colors, vanities, kitchens, door knobs, fixtures, etc prior to even starting. Once you purchase your flip, it can take forever just deciding what styles, colors, etc of things you like which can take up valuable time. Once you’ve started renovating, you want to plug and play! If you decide to do numerous flips, you plug and play for each house. If you really get to be a pro, you can pre-purchase items in bulk and save a lot of money.
- The Devil is in the Details! Buyers and agents can spot a poor flip from a mile away…cutting corners to save a buck on cheap carpet, paint, etc just delays selling your project and starting a new one. Don’t forget the small stuff…door knobs, electrical outlet covers, light fixtures. All of this can increase the desirability of your home and get you a reputation that agents will remember. You don’t need all top shelf items, but good quality materials and worksmanship pays off in the short and long term!
- Make your money on the front end, not the back end. Purchase well. Anyone in the military knows that you start your planning on the objective and work your way back. Calculate what you might be able to sell a property for in a certain area, full renovated. Always estimate on the low end. Estimate costs for renovations. Determine a profit margin for yourself and come up with a price that you would like to pay for the home. Always be willing to walk away from a deal if you think margins will be tight. Be smart, not cheap. Wasting time with lowball offers on the front end or ridiculously high sales prices on the back end just keeps you from turning more houses. You’re not going to hit a home run on every at bat. Being fair on both ends gives you or your company a better reputation and allows you to execute more projects!