09 Feb INVESTORS’ CORNER: Fix and Flip Property: How to do it?
The concept of fixing and flipping property has taken a new turn and nowadays, it is a lucrative way for investors to amass wealth and increase their personal net worth. Who knew buying that beautiful yacht would become easy after getting the hang of fixing and flipping property. Although it’s profitable, it isn’t easy.
Fixing and flipping properties needs foresight, courage, patience, and consistency. If you’re looking to undertake this venture, then you need to be aware of the correct steps to take. Here are a few guidelines to help you get started.
Investments are risky; everyone knows that! But in life, you need to take risks and step up to challenges in order to move ahead. Granted that fixing and flipping properties is difficult and somewhat complicated, it isn’t something which is totally impossible. With the correct attitude and mindset, you can easily undertake and become a champion at it.
Begin by enlightening yourself about fixing and flipping property and gain more knowledge about how it works. You can also meet with other investors, realtors, attorneys, and lenders who are actively involved in fixing and flipping properties.
If you want to be successful at fixing and flipping property, you need a hardworking team as well. Hence, setup a corporation by hiring a professional real estate lawyer. Additionally, you will need qualified contractors, insurance agents, real estate agents, and accountant.
You need to look for a property that requires renovation, repairs and updating. But seldom will the best deals be found through MLS listings. This is mostly used for home owners. Drive the neighborhoods you are interested. Look for homes under stress, such as high grass, trash in yards, bad roofs, maybe empty. Find the homeowner and call or send letter offering to buy house.
Here comes the crucial part. Once the house has been bought, receive final quotes from your subcontractors and contractors and start the repair work. Make sure that the work is completed on time and that no extra costs are incurred against your budget.
Note: Just so you do not give up too soon. We have been buying houses for rentals and flipping for over 40 years. We usually look at around 20 houses before we negotiate a deal. Seldom is it a one look and purchase. Just stay the course. It’s not a good deal unless you and the seller wins.
JC Underwood is a Director at the Metrolina Real Estate Investors Association, which provides education, mentoring, and networking for real estate investing in the Charlotte region. He can be contacted at jcu@MetrolinaREIA.org. For more information, visit www.MetrolinaREIA.org.9