ToddHillHomes
Blog Post
House Flipping Tips by Todd Hill for Cutting Costs and Increasing Profits
- By John R. Sneller
- •
- 24 Jun, 2017
- •
Anyone looking into wholesale real estate will want to pick up a few house flipping tips to keep their costs down and profits high. In the house flipping game it's all about how you set your budget and the final selling price of the home. So, with the aims of keeping you, the real estate investor, within budget here are several house flipping tips by Todd Hill
(A Real Estate Developer) towards success.
1) Choose the Right Property
It's possible to be so eager to get into wholesaling property that you buy the first cheap house you can find. House flipping is about more than buying a cheap house. It's about finding the right cheap house. You want a property that is structurally sound, but needs a lot of cosmetic repairs. This way it won't cost you a lot of money to invest in that property, fix it up and you'll still be able to sell it at close to current market value.
Another house flipping tip to keep in mind here is to make sure you get a home inspector to look over the property you'll be signing papers on. A home inspection can ensure that the property is structurally sound before you buy.
2) Look for Homes Needing Cosmetic Repairs
This was touched on by the first of the house flipping tips, but warrants further explanation. You'll want to seek out wholesaling property that is in need of yard work and a good coat of paint. These are the kinds of repairs that a homeowner doesn't want to do themselves, when moving out or moving in. Yet, they can greatly increase or decrease the value of a property.
Plus, new paint on the exterior, fresh paint on the interior and some yard work are all investments that can be done quickly and less expensively than major home remodeling or rehabbing.
3) Get Rid of Mold!
Mold is a deal breaker. Recent news has made the average homeowner terrified of possible black mold in a home. Plus, it's really hard to get out of a home once it shows up, meaning more time and expense.
When you see mold in a home you're considering you may want to reconsider it. At the very least it's bound to lower the price of the home.
4) Cost List and Double it
Basic house flipping tips say that you should always double your estimate for fixing up a property. Keep that in mind when figuring how much you think you can offer to buy a property and still come away with a profit.
No matter how accurately your contractors estimate the cost of repairs, something inevitably happens to increase the final price. So, doubling your repair budget automatically creates a buffer zone for wholesaling property. If you come in under that amount at the end, then it’s just more profits for you.
5) Contractors take time
This isn't so much a cutting costs tip as a warning. Most contractors have multiple jobs going on at once or backlogged. If you decide to just pick a contractor out of the yellow pages one day he or she may not be able to get to work on your house for a few days or weeks, maybe even months. So, keep this in mind if you have a property that will need major repairs or are running short on funds for carrying costs. It may be better once you get low on funds to just cut your losses on a property that still needs repairs by selling it as is.
6) Make Moderate Improvements
A lot of investors wholesaling property make the mistake of going overboard in their improvements. They don't take into account what homes in the surrounding area are actually selling for and so invest a more money than needed in a property. This can be in time, effort and especially money.
For instance, if no other homes in the surrounding neighborhood have miniature water features in the backyard, there is no need for you to add a miniature water feature to your homeowner's backyard. It increases the price a lot, but also requires a lot of care on the part of the buyer and really only appeals to a certain select group of homeowners.
There are plenty of other house flipping ideas you can follow to keep those costs down when wholesaling property. In fact you'll probably come across a few of your own private tips and ideas as you start flipping more houses. Hopefully, the above tips are a good start for your burgeoning real estate investor's tool box.
Todd Hill is a real estate entrepreneur that has over two decades of experience in the industry. Todd’s expertise spans a range of skills including building and remodeling to investing and development. He has definitely the solution to all your real estate issues, contact him at info@thillhomes.com or call 913-927-0595.
For more details, please visit here: https://toddhillhomesutah.wordpress.com/
1) Choose the Right Property
It's possible to be so eager to get into wholesaling property that you buy the first cheap house you can find. House flipping is about more than buying a cheap house. It's about finding the right cheap house. You want a property that is structurally sound, but needs a lot of cosmetic repairs. This way it won't cost you a lot of money to invest in that property, fix it up and you'll still be able to sell it at close to current market value.
Another house flipping tip to keep in mind here is to make sure you get a home inspector to look over the property you'll be signing papers on. A home inspection can ensure that the property is structurally sound before you buy.
2) Look for Homes Needing Cosmetic Repairs
This was touched on by the first of the house flipping tips, but warrants further explanation. You'll want to seek out wholesaling property that is in need of yard work and a good coat of paint. These are the kinds of repairs that a homeowner doesn't want to do themselves, when moving out or moving in. Yet, they can greatly increase or decrease the value of a property.
Plus, new paint on the exterior, fresh paint on the interior and some yard work are all investments that can be done quickly and less expensively than major home remodeling or rehabbing.
3) Get Rid of Mold!
Mold is a deal breaker. Recent news has made the average homeowner terrified of possible black mold in a home. Plus, it's really hard to get out of a home once it shows up, meaning more time and expense.
When you see mold in a home you're considering you may want to reconsider it. At the very least it's bound to lower the price of the home.
4) Cost List and Double it
Basic house flipping tips say that you should always double your estimate for fixing up a property. Keep that in mind when figuring how much you think you can offer to buy a property and still come away with a profit.
No matter how accurately your contractors estimate the cost of repairs, something inevitably happens to increase the final price. So, doubling your repair budget automatically creates a buffer zone for wholesaling property. If you come in under that amount at the end, then it’s just more profits for you.
5) Contractors take time
This isn't so much a cutting costs tip as a warning. Most contractors have multiple jobs going on at once or backlogged. If you decide to just pick a contractor out of the yellow pages one day he or she may not be able to get to work on your house for a few days or weeks, maybe even months. So, keep this in mind if you have a property that will need major repairs or are running short on funds for carrying costs. It may be better once you get low on funds to just cut your losses on a property that still needs repairs by selling it as is.
6) Make Moderate Improvements
A lot of investors wholesaling property make the mistake of going overboard in their improvements. They don't take into account what homes in the surrounding area are actually selling for and so invest a more money than needed in a property. This can be in time, effort and especially money.
For instance, if no other homes in the surrounding neighborhood have miniature water features in the backyard, there is no need for you to add a miniature water feature to your homeowner's backyard. It increases the price a lot, but also requires a lot of care on the part of the buyer and really only appeals to a certain select group of homeowners.
There are plenty of other house flipping ideas you can follow to keep those costs down when wholesaling property. In fact you'll probably come across a few of your own private tips and ideas as you start flipping more houses. Hopefully, the above tips are a good start for your burgeoning real estate investor's tool box.
Todd Hill is a real estate entrepreneur that has over two decades of experience in the industry. Todd’s expertise spans a range of skills including building and remodeling to investing and development. He has definitely the solution to all your real estate issues, contact him at info@thillhomes.com or call 913-927-0595.
For more details, please visit here: https://toddhillhomesutah.wordpress.com/
