Saturday, April 11, 2015 / by Steven Annth
Home Flipping - The Rules
Whether you are just beginning to flip homes, or have some experience, or have many years of experience; there are some rules you should follow. These rules will ensure success for your foreseeable future in the real estate industry. We will discuss a few of these rules right here in this article.
The first and perhaps most important of these rules is; when it comes to the ethics of home flipping, do not let anyone tell you this business is unethical. Although in the past this may have been true, nowadays there is a whole new crop of investors. The industry has changed dramatically and is now seen as honorable. Not only is house flipping ethical, but you are providing the home seller with some much-needed financial relief. Additionally you are enhancing the look and value of the community this house is located in. These are all great things.
Another important rule for you to follow is to be choosy, especially in the beginning. Do not buy the first home you see. Stay within your comfort zone when it comes to your budget and whether or not this home can be purchased and improved for that amount of money. You will eventually find your perfect initial home to invest in. Take your time and select the right one. Also; don't just go by the outside of the home, or the way it appears on either the outside or the inside. Ask questions of the seller. If you think you might want to purchase it, have it thoroughly inspected. This is especially critical if it is an older home because anything could go wrong with it. An inspection by a reliable company should avoid most of these problems.
One additional good rule for you is to make your money at the time of purchase rather than when you resell it. This is the philosophy that will drive your profit and keep you in business. If you know how to talk to people, you can obtain this goal by convincing the seller that you can offer THEM an excellent deal for the home. Most of the time they want to get out of the home quickly for whatever reasons. You can offer them the opportunity to do this and still come out of the deal with money of their own. This is extremely valuable advice to follow.
The last rule we shall discuss is one we just touched upon. You need to be a people person. While you do not need to win a personality contest, you will be constantly dealing with people. Therefore if you don't get along well with others and make them feel comfortable around you, this is not the business to be in.
Believe it or not even you can learn to effectively flip houses. Then ultimately you WILL be able to give up that ultra-boring nine-to-five job. Then you will be successful for many years to come.