Fix It Sale it
1. Don't waste your time...Make sure you have access to funds required to complete the project. The last thing you want to do is create a toxic asset for yourself
2. Prepare to do research (comparables) you need to know what the house will go for once it's fixed up. This might sound like common sense but trust me it's not. I had a friend he bought a house for $43,500 (great deal) all he needed to do was
- Replace the carpet
- Replace 2 windows
- Paint the outside of the house (the inside was fine)
This was a easy $3000 in repaires
Here is what she did instead
- installed a new shower
- finished the basement
- installed a fireplace (sounds nice I know)
- Added a bathroom to the master Bedroom
She thought that she could charge more for these enhancements. True there were some she could and some she couldn't! So in the end she lost a bit of profit (basically gave money away) she wasn't planning on living in the home.
3. Get a handy man on your side that can help you with estimating repair costs. Also if you are cutting them in on the deal they will work at the cost of the supplies or atleast give you a reasonable discount!
4. Good calculator is always handy you will need this for doing basic math.
5. Will you need to use rehab financing or you own money (i don't ever advise this) Be sure to speak with a good loan officer to help you with this.
- The more money you have in the deal (your money that is) the more risky it becomes
- Don't use your own money unless you have to and it better be one heck of a deal
6. If you don't know how to fix upa home meaning little repairs (cabinets, floors, windows, painting and carpet) hire a professional to do this for you
7. Remember the longer the house sits the more money it will cost you so have a good action plan set in stone.
- Now how you are going to begin to market
- Have an exsit strategy (it's best to have quite a few)
8. You must have qualified buyers on hand (on a list) this will reduce the amount of time the house sits on the market.
When you 1st start off look at only the properties that need cosmetic repairs (esier this way).You also want to target homes with ugly unkept yards.
Fixing and flipping homes can be a great way to pull in some extra income but you can also make someones dream come true (like a 1st time buyer)!
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