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These days, reality TV shows can make house flipping look like an easy way to quickly make a lot of money. But the reality is that flipping a house is a strategic business endeavor that requires an investment of both time and money. Buying, renovating, and selling a home in a short time (and turning a profit) is a big undertaking even for the savviest of home flippers. But the good news is you don’t have to do it alone. In this article, we’ll explore what house flipping is, why you need top-notch professional partners like real estate agents and investment groups at your side, and what you can do to ensure that you find success at the end.
Before we dive into the nuts and bolts of house flipping, it’s important to understand just exactly what the term means. Essentially, the term “house flipping” is used to describe the process of leveraging real estate as an investment. Rather than buying a home to live in, a person may choose to purchase a property with the intent of remodeling or renovating over a short period, then selling it for a profit.
The goal of home flipping is to invest wisely. This means finding and purchasing a property that is undervalued for a specific area and then making smart decisions about how to renovate. To be clear, home flipping isn’t about cutting corners; it’s about choosing the right renovations based on what will add the most value to the property and draw in potential buyers. And most importantly, it’s about knowing when to ask for help. Most people think that flying solo will net the highest profit, but the truth is that involving professionals like investment partners, real estate agents, and contractors can often give you a leg up on the competition. These home flipping experts understand how to invest intelligently and conservatively to ensure you yield the highest returns. And because they work in this industry every day, they know how to renovate quickly and efficiently — saving you both time and money.
Flipping homes isn’t something you can jump right into. It requires careful planning and consideration as well as being able to find and procure the right investments. To get started, you’ll need to find a reputable real estate investment partner who has experience in all three stages of the process — procuring, remodeling, and selling.
An experienced turnkey investment partner will help you in several ways:
Understand your local housing marketing and the current market conditions.
Scout properties and find the right buyer.
Help determine the right remodeling projects and find the best contractors.
Know how to time your sale and set the right list price.
Generally speaking, yes, Memphis is an excellent place for flipping houses, but it’s important to understand that not all areas of the city will reap the best financial gains. An experienced Memphis investment partner can help you decide if flipping is a smart venture to make as well as the best areas of the city to invest. It’s a common misconception that flipping can be profitable in any area, but your partners can ensure you don’t lose money by investing in the wrong area at the wrong time. Memphis market conditions can change drastically from quarter to quarter, so consulting a professional will ensure you choose an investment property that nets the highest return.
As you probably already know, house flipping is a speculative investment with no real guarantees. In essence, you’re taking a chance on an old, run-down property in the hopes that it will sell for a higher value once you invest an estimated amount of time and money on repairs and upgrades. With this type of venture, finding the right house to flip is the most important part of the entire process. This step determines how much money you have left for remodeling as well as your profit margin at the end. Experienced Memphis turnkey investment partners have their finger on the pulse of the current market and can help you make the right bargain buy. They understand how to negotiate the best deal for your as-is home purchase, and they can assess how comfortably the remodel costs will fit your budget.
Flipping a house is an expensive venture. Depending on the types of renovations your property requires, a few simple upgrades can cost anywhere from $35,000 to over $100,000. Savvy partners understand how to get the biggest bang for your remodeling buck; they understand what potential buyers will be looking for, and they can share those tips with you. For example, an agent can help you avoid paying retail for things like carpet or laminate because they will have insider information regarding discounts and bulk-rate opportunities. Additionally, an experienced agent can help you find contractors that can work on a small budget.
When it comes time to sell your newly renovated home, it’s important to understand that it’s only worth what a buyer is willing to pay and what the bank is willing to finance. An experienced Memphis investment partner can team up with an agent and put their marketing and sales mastery to work at this point to ensure your flipped home can be sold quickly and at the highest value. This is because they keep an eye on market trends throughout the remodeling process and help the seller to set the right list price when it is finished. Along with assessing the value, your agent can evaluate your expenses and ensure you recoup your investment as well as a healthy profit.
Flipping a home requires money, time, planning, and patience. It also has its risks, especially if a new flipper underestimates the level of commitment required. If you’re thinking of flipping a house, make sure you understand what it takes as well as the potential risks involved. And if you’d like to know more about the process and how — with the right tools, information, and real estate partners — flipping houses in Memphis can be a great investment, contact us.
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