If you learn to master the fix and flip real estate market, then you can increase your wealth and achieve great financial goals. Many investors use this approach and leverage the housing inventory of up and coming markets. This week, Stonebriar Mortgage helps Dallas, Texas and California homeowners with tricks and tips for fix and flip properties.
Learning the Art of Fixing and Flipping
Many people get into the business of fixing and flipping properties via classes or by shadowing an experienced professional. Even after class, it is important to network and stay registered to news and blogs. You need to stay current on the latest best practices. Be sure to consider reviews and feedback on courses before you pay. Many people say the best classes cover an array of topics. You will need skills in managing construction contractors, finding affordable properties, negotiating, selecting properties, and targeting your market audience.
Finding the Right Neighborhood for a Fix and Flip Property
When you look for the right neighborhood to buy your fix and flip house, focus on markets that have great growth potential, but that are not too expensive. Usually the local city is aware the area is poised for dramatic growth, and so they will upgrade the infrastructure to keep pace. Many up and coming neighborhoods exist in the Dallas and California areas.
Budgeting for a Fix and Flip Property
You will need to allot funds to purchase a home, pay contractors, legal fees, financing fees, and other costs. Even if you do not hold on to the property for a long amount of time, you may still need to pay HOA fees, taxes, and insurance on the home. You should have a budget and monitor expenses closely during each phase of buying and selling the property.
Finding the Right Property
Many people spend ample time learning how to find the right property to fix and flip. Older homes may be more affordable to purchase. You should thoroughly review the history of the home and neighborhood. If you do not inspect the house well, you risk finding an unfixable or unaffordable problem during your rehab. You should also be aware of the local laws governing the home and whether there is lead or asbestos to remediate. Some people even get a second opinion when inspecting the property.
Selling the Fix and Flip Property
You will want to ensure you get the home properly appraised and inspected for its value after you make the repairs. You will also want to recoup your costs for financing, rehabbing, and holding the property. If the home is taking too long to sell, you may need to adjust your price to attract customers. Stonebriar Mortgage can help you find fix and flip opportunities in Dallas, Texas and California. We welcome you to learn all you can about investing in real estate and contact our office for details.
