By now people all over the Real Estate business know what Fix and Flip means but honestly is one of the best and easiest ways to being able to buy a house, fix it up and eventually flip it back in the market for a much higher profit, and sometimes fixing it is not really that expensive, actually sometimes it’s just a good paint job and done! It will always depend on the property but in this article we are going to be talking about the best ways to fix & flip your house right now!
Before we start though, have you checked this article about the 7 Sure Ways To Ensure Your Next House Flip Is An Epic Fail by Bigger Pockets? It’s really good about what not to do when trying to fix a house and turn your flip into an epic fail! Do yourself a favor and check it out after you finish here! Also check our article about Flipping is Back as Real Estate Investment Royalty!
Get your budget right
Now, I know it’s not a way to fix and flip a house but it is a necessary step, so know that this part is what most people would consider the easy one, but quite honestly it’s the one who will determine how much you are going to spend and how little you want to lose, so make sure you have made the right choice and settle a budget before even searching for a house, what does this cover? It needs to cover the price of the house AND the price of how much you want to spend when fixing it! This way you will be able to avoid extra payments and running out of money putting this project on hold and losing more than you gain, so first get your budget and then go out on the world!
Check this article right here about the 6 Simple Steps to Assess the Real Cost of a Fixer-Upper House by HouseLogic, and see if you can actually cover the fees of a fixer upper deal right to get the maximum amount of profit during the flipping side.
Buy and rent
This type of fix and flip is actually one of the most common ones, you buy the property and rent it out while doing some easy fixes here and there before you sell it to a much higher price. This way is easy and pretty darn good if you want to get not only a good profit but a continue cash flow which could pay part of the fixing of the property. The problem I see happening with this type of fix and flip, is the fact that if the house needs more invasive repairs this could cause some issues with your tenant, or even worst, you are renting it to a bad tenant who could potentially damage the property further down and make it far more expensive to fix it up and you end up having to only rent it while you are also under water!
So if you’re considering going down this route, read this article about Renting Out Your Home? 5 Things You Need To Know by Forbes and see if this can actually apply to your current situation!
Get a deep rehab!
A good deep rehab can be an attractive choice to go around fixing and flipping a house, since they tend to be super inexpensive as well as really in bad shape! So go back to the first part of this article before jumping into one! What are the benefits? Endless! Usually a deep rehab can be dirt cheap and you can turn it upside down into a) the most beautiful house ever and b) to a much much much higher price than what you bought it for! This is why it’s one of the best ways to actually do a fix and flip type of deal, because you will be doing a ton of work and the compensation is actually much higher than what you could’ve anticipated! The downside of this type of fix and flip deal is the fact that you risk too much and you don’t know for sure if you will get a gain till the whole process if over and done with! It’s also easier to do if you have some experience in the field, so don’t risk it and jump right into it!
Check this article Investing In Real Estate? Watch Out For These Surprise Rehab Costs by Newwestern and protect yourself from having trouble while doing a deep rehab.
I guess this is just the most common way to fix and flip a house, because you could take out the fix part of it! Wholesaling is the best way to flip a house in no time, as you buy and immediately sell it for a higher price and get a bit of profit from it, and with this method you could win little by little that can add up to a much higher profit in the long run! So does it work? Yes, absolutely, but it’s also most of the time considered a bit of trouble for the seller as they might take it the wrong way when actually you’re trying to hurry up the process, obviously not only to be helpful but to get something from it as well! It is still a great way to know the business and sell houses fast and easy, but try to do things as legit as possible!
If you are just starting in the business of Real Estate, read this article: Is Wholesaling a Good Way to Start Investing in Real Estate? by Invest Four More as well as our article Is Wholesaling a Bad Thing? To know more!
Buy and hold!
Similar to buy and rent, buying and holding a property when trying to do a fix and flip is one of the smartest decisions you can make, by this I mean, you can just buy the property, fix it up and hold it for a bit before reselling, why? Because you can see if the market for this specific property you have is growing hotter and hotter, meaning you could get a much higher profit than you anticipated at the beginning, all of this is about the waiting game though! Because you need to make sure this kind of property will actually grow hotter and hotter in the market to calculate how much you will be able to get from it in the long run! But don’t be scared though, sometimes a month is all you need, and if you take advantage of the situation you will be cashing in so much more than possible!
Check this article to get inspired on this kind of Real Estate investment 16 Reasons Why Buy And Hold Real Estate Is The Ideal Sustainable Investment by How to buy USA Real Estate.
Hopefully you found this helpful, if you did, share it and let us know what you will like to read in the future!