Contrary to popular belief, flipping houses is far more hustle than it is glamour and money. In fact, to truly cut a profit, you need to know the property flipping tips to maximise returns. Otherwise, you aren’t in it to win it.
Investing in fix-and-flip real estate can be rewarding, for sure! However, you need to do your due diligence to ensure that you maximise your returns efficiently. If you do everything correctly, you can most certainly find great success in flipping houses.
While it can be tempting to dive in, this is a huge mistake. It is critical that you arm yourself and know exactly what you’re doing.
Top 5 Property Flipping Tips
Knowing the property flipping tips to maximise returns can make all the difference as you go through the flipping process. Home renovations certainly aren’t cheap, but there is help available in the form of renovation loans. You can also shop around to find the best prices.
Now, let’s take a look at some of the best property flipping tips to maximise returns!
1. Buffer Your Budget
It is important when flipping houses to be conservative with your budget. This is especially true if this is your first time flipping. You should ensure that you plan out your budget but still allow for changes where necessary.
Obviously, unexpected costs may come up which could force you to change directions. When you start to open up walls or continue with renovations, there are bound to be extra things needing to be fixed. You also need to consider the little things that you might forget to account for.
One of the best property flipping tips to maximise returns is to add a buffer in your budget. This way, all of the unexpected expenses are covered.
2. Be Realistic
Before you are able to successfully flip your property, you need to assess the price of your home. Then you need to figure out what you can do to increase that price. When you are able to assess the realistic price, you will ensure that you don’t blow over budget.
This is helpful as renovations are never cheap. Increasing the price is of the utmost importance to maximise your returns. After all, isn’t that what flipping is all about?
You need to ensure that you include things such as:
- A new coat of paint
- Installing better windows
- Refreshing the flooring
If it isn’t necessary, you should invest your money in recent trends. Make sure you remain realistic. If your goal is to flip quickly, you don’t need to bother with massive renovations.
Simply start small and build up from there if you’re a beginner.
3. Seek Undesirable Houses
One of the most important property flipping tips is to be savvy with the houses that you choose to invest in. When looking for houses, try to find ones with a solid foundation and structure. It doesn’t matter if they have ‘undesirable’ features such as:
- Ugly paint
- Unkept lawns
- Old windows
These details are very easy to fix yet they often lower the value significantly. However, you should avoid houses with:
- Structural damage
- Leaky roof
- Plumbing systems needing repair
Make sure that you view the house in person. This way, you can avoid any bad surprises.
4. Have an Exit Strategy
When flipping houses, you need to ensure that you have at least two viable exit strategies. You should also ensure that you don’t dawdle when choosing which one to execute. If you buy a house and find yourself in over your head, you will need to resell it and move on.
Yes, even if this means selling at a loss. Every investor has had to do this at one point or another.
5. Be Better Than the Competition
Try to focus on doing better quality work in order to do better and be better than your competition. It will also help the finished product become far better. You definitely don’t have to overspend.
You can do this all on a small budget and still make it superior to your competitors. One of the best property flipping tips to maximise returns is to simply be better than your competitors. A good work ethic means everything.
Property Flipping Support
Flipping houses certainly has its challenges at times. From getting a loan to finding the right property, there will be uncertain times. However, if you can make it all the way through, the process can be incredibly rewarding.
There are many great resources available for you. If you need help with securing a loan to finance your property flipping ambition, get in touch with Australian Lending Centre.