If you’ve watched any reality television in the past 2-3 years you’ll likely notice that the home renovation industry is booming. House flippers like the Yancey’s from Flipping Vegas or Tarek and Christina from Flip or Flop are seemingly making thousands of dollars turning houses without ever really getting their hands dirty – and in only 2-3 weeks time or less.
The house flipping shows are definitely a guilty pleasure and most viewers know they only show the ‘sexy stuff’ but you’d be amiss not to think, “I could do that” when watching these programs. Most people know you’re going to need money – or at least spectacular credit – to become a flipper, but what else is there to know when cracking into the industry?
Knowledge of the Real Estate Market
Knowing how the real estate market works is not only the bread of the house flipping sandwich, it’s the ingredients in the middle as well. You’ll need to use a real estate agent website when first buying the house, knowing what you should pay and the market in which you could potentially sell for. Continuing, you’ll also want to understand what buyer’s want when deciding what renovations to make in the home. With house flipping, spending money on one thing over the other (open floor plan compared to basement man cave) both attracts buyers and makes the home more valuable. Finally, you’ll want to have the expertise of a real estate agent website builder to know when to put the home on the market, for how much, and how to attract the most potential buyers (open houses, online ads, etc.)
Until you are flipping houses as your sole source of income and with a professional crew under your payroll, the best way you can save money is by doing as much DIY renovation as possible. For this it is extremely beneficial (and profitable) to have some construction skills under your belt. Even if it is just demolition and cleanup, that’s one less service you have to contract out and one less dent in your profit margin.
An Arsenal of Professionals
No matter how much personal construction knowledge you have you’ll still need to hire a licensed professional to do the home inspection before putting it on the market. On top of that you may not be familiar with electrician work or aspects of plumbing which could also require hiring out. You’ll need to work with finance officers to first buy the house and then zoning regulators to get permits to start building. The property may also need surveying for boundaries and septic locations if not on file in the public records office. Simply put, there are a number of expenses beyond buying-fixing-selling associated with becoming a home flipper.