Flipping a house is a process where a buyer acquires and renovates a property, then sells it at a profit. It can be an interesting investment option because the market for properties has been on the rise in recent years. Some people are also flipping houses as an alternative to renting, because they think that the rental market is too unstable. In this article, we will look at a step-by-step guide on how to do it.
The Seven Steps of Flipping a House
If you want to flip a house in as little as 24 hours, follow these easy steps.
1) Identify which type of flipping you want to do: buying a property that is in poor condition and needs some cosmetic work or purchasing a pre-existing, fixer-upper?
2) Research the market: Once you have made your decision, study the market to see what properties are available and at what price range. Check online sources such as Zillow for current prices and availability.
3) Begin your due diligence. Once you have an idea of the cost of flipping a house and the size of property you would like to purchase, begin your due diligence by interviewing the property owners and/or visiting the property.
4) Make sure all permits are in order—if necessary, get permits from various jurisdictions. Some common permits you may need include a building permit, zoning permit, fire safety inspection, and plumbing permit. You can find more information on the various permits available online or through your local government.
5) Schedule a walk-through with an experienced real estate agent. This will help ensure that the property is in good condition and meets your specific needs. You’ll also want to review the seller’s closing disclosure forms to make sure any potential problems have been disclosed.
6) Get pre-approval from your lender. This will help you know what the costs of the flip will be and give you some assurance that the deal is feasible. It also gives you peace of mind when completing the sale, knowing that your lender is on board and won’t pull out at the last minute.
7) Set up a contract with your contractor and get ready to flip! When you’re ready to flip a house, make sure you have a contract in place with your contractor. This document will outline the steps that need to be taken during the flipping process and will protect both you and your contractor. By having these details organized in advance, you’ll be able to move forward smoothly and minimize potential disputes.
When you’re ready to sign a contract with your contractor, make sure you have all of the key details in front of you. Here are some tips for laying out the terms:
- Set a start date and time for work.
- Discuss what is included in the project scope.
- Establish how much money will change hands and when it will be paid in full.
- Specify who will be responsible for what during construction, and when any final inspections or repairs should be completed.
- Agree on a completion date and make sure it is realistic based on the project’s timeline and budget restrictions.
- Make sure that both parties understand any potential penalties or damages if the project falls behind schedule or goes over budget, respectively.
Risks of Flipping a House
House flipping is a popular and lucrative investment strategy, but there are risks involved. Some of the most common include:
- Property taxes may go up, as the property is reclassified from one tax bracket to another;
- The value of the home may decrease if there is a downturn in the economy;
- The home may be in a less desirable neighborhood than originally thought;
- If any repairs are required on the property, they may cost more than anticipated;
- The home may not be available for sale for an extended period of time due to repairs or relocation.
If you’re looking to flip a house in as little as 24 hours, follow these easy, step-by-step instructions. With a bit of effort, you can make a quick profit and start living the dream life! However, it is important to note that you will not likely see overnight success in this strategy without an expert’s help. Remember that there are some risks associated with this approach, so it’s important to be cautious and work at your own pace.
Contact Global Integrity Finance to help you get started with flipping a house. We have a team of experts with decades of experience in the industry, and we’re always ready to help you turn your investment into a profitable one. Contact us today to learn more about our flipping services and how we can help you make the most out of your property.
Global Integrity Finance is a nationwide, direct, hard money lender. They provide many different types of real estate investment products for brokers as well as borrowers. Located in McKinney, TX, they’ve been serving the community for 25+ years and now serves our entire nation. They truly have a comprehensive understanding of the mortgage industry unlike any other lender.