The fixing and flipping business you see on your television by Lazaro Dinh
Industry: Real Estate
What is all this “flipping” business really all about? The good the bad and the ugly exposed! What happens when you don't have your own TV show?
Miami Florida (PRUnderground) April 14th, 2019
All of these TV shows make fixing and flipping a house seem easy. But in the real world is all about the bottom line and sometimes it is ugly.
The American dream for some is to be able to buy a home. For others it’s more than that. Over the years I have met Real Estate Investors that have made millions in the fix and flip business but unfortunately there are more ugly stories than pretty TV shows.
If you want to make sure you are buying the right property for yourself or to fix and flip, follow these easy steps and hedge your risk, unless you can count on the income from your own TV show.
1-Ask yourself, does the property have solid bones?
Avoiding expensive repairs on your initial flips is key. It will eat into your bottom line in more than many ways. Make sure you have a good roof, foundation, plumbing and electrical system and if you are not sure, please hire an inspector and avoid costly mistakes.
2-Are you getting a good deal?
Price is key but more important where the property came from. In Real Estate you make your money when you buy not when you sell, what this means is that if you pay too much you might never make a profit. There is the MLS system where realtors list properties for their clients, there are wholesalers that find off market properties and flip them to Investors and there is word of mouth. The best deals are the ones that come direct and have the least amount of people involved. Then there is the price, the property may come at a fixer-upper price, but how does it compare to others in the area? There is no better feeling than finding the needle in the haystack and the deal that makes financial sense.
3-Inspections or no inspections?
Obviously when you are buying a fixer upper there are risks, there is also the inspection period that most contract call for and then there are the seasoned Investors who buy sight on seen. I suggest that until you do some successful flips, you don’t take risks that could financially ruin you. Just like in TV you should always try to bring a GC and or at least do your own inspection if you know what to look for.
4-Time to renovate.
Most renovations call for local city permits to be pulled, items like new roofs, kitchens, Air Conditioners and electrical upgrades require a permit. Don’t take the risk of doing these upgrades without a permit, most Buyers will ask to see the closed permits and demand a warrantee from a licensed contractor for any work that was done. If you try to do the work yourself, keep in mind that unlike most TV shows there is a mountain of risk you expose yourself to when you don’t do things by the book. Make sure you have checked with your local building department and ask what items need a permit. Remember it is always best to avoid buying a house that requires more than minor renovations.
5- Time to sell!
Finally it is time to sell or refinance if you are going to keep this house as your dream home or rental. For those looking to sell and reach the greater audience of buyers, please avoid for sale by owner. Hire a professional Realtor to list your property so that you have someone representing your best interest. There are many commission structures depending how involved you want to be with the selling process and there is also very inexpensive and even free “flat rate listings” websites like www.sodire.com
Are you considering your first fixer upper?
We can help you evaluate the purchase price, repair costs and determine the future resale value of the property. We can also help you avoid costly mistakes
If you’ve already got your eye on a fixer-upper, or want help finding a contractor in our area, get in touch with us today at www.reodocket.com
April 14 2019
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