Fix and flip! Sounds so catchy and easy. You fix, and you flip. But the amount of time, energy, and effort this task requires can be a lot to handle. Whether you’re just starting or are a pro in this business, here are a few things you should keep in mind.
1. Evaluate the Place’s Needs
Before taking up a project, create a mental picture of what you want the result to be. Based on that, check what things you need to change, repair, or get rid of. Also, identify and list all the issues the property has. Does it have mold or asbestos that you should work on ASAP? Are there any walls that need to be demolished or any plumbing that requires fixing? All of these questions will help you come up with an estimate of the time and money the project’s going to cost you.
2. Build a Strong Team
To become successful in the house flipping game, you need to know the right people. These include a trusted realtor, an asset-based lender, an attorney, and a trustworthy general contractor.
3. Know Your Budget
We’d all want to create a Manhattan Skyscraper, but that’s just not possible. Before undertaking a project, you have to consider numerous factors, including your budget and the potential value of a property after you’re done renovating it. Always know your budget and never exceed it. This will help you sustain your business without seeking any drastic financing measures.
4. Know Your Local Market
Something that all realtors swear by and everyone in the industry knows by heart is: “Location, Location, Location.” You should have a thorough idea about where your property is, the kind of neighborhood, and how much your real estate property would be worth after you’re done upgrading or renovating it. You should always have a deep understanding of the local market if you want to make it big in this industry.
Get Asset-Based Loans in the US
Looking for a reliable asset-based lender? You’ve come to just the right place. Along with asset-based lending, GCP Funds provides hard money loans and bridge financing in various parts of the country, including Virginia, Seattle, Memphis, Baltimore, Norfolk, and Tacoma. So, get in touch with them today to discuss your financing options.