subject: 4 Factors To Consider When You Fix And Flip A House [print this page] There are many ways to make money in real estate. Theres investing in rental properties, doing short sale deals, wholesaling, and flipping. If you have lots of funds and want to put your money to work by financing real estate investments, you can try hard money or private money lending. But if youre looking for a challenge, then you should try rehabbing homes.
Rehabbing, or simply to fix and flip a house, involves the process of buying and renovating undervalued properties for profit. In a nutshell, the main job of a rehabber is to restore an old house into a livable condition and make money in the process. However, there is more to the business of fixing and flipping homes aside from ensuring that the property will suit the needs and taste of the buyer. Here are the four things that you need to consider when doing a home rehab:
1.Location of the property
Always remember that location can affect the success rate of your rehab projects. Put yourself in your buyers shoes. Would you be willing to live in a place that is so detached from civilization? Or do you want your house to be surrounded by ugly properties and foreclosed homes? Of course you dont, which is why you have to be sure that the house you want to fix and flip has proximity to important public amenities and is situated in a nice neighborhood. This can help convince a potential buyer to purchase your rehab project once the renovations are done.
2.Your budget
Before you fix and flip a house, it would be wise to draw up a financial plan. Creating a budget can help you avoid splurging your funds on lavish renovations. It can also stop you from making unnecessary expenses, which can be detrimental to the financial health of your real estate business.
3.Getting outside help
One of the best ways to ensure maximum profits when rehabbing homes is to quickly finish the repairs and find a buyer for the property. Always remember that the longer the houses stays with you, the lower its fair market value tends to be. Therefore, enlisting the services of contractors is something that you should consider as it can help you finish the rehab work faster and easier.
4.Marketing
Marketing is vital in the real estate investing business as it helps you buy and sell properties quickly. As a rehabber, you will need to brush up on your marketing skills as it will allows you to find leads to affordable fixer uppers homes and to potential buyers, as well.
