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The blog post Start With A Solid Foundation For House Flipping See more on: http://www.MPGDeals.com It seems like every channel on TV has some sort of flipping show now. Some are better than others, while some seem to be all about just making a TV show. Sorry Mr Investor, but if you bought a house and didn't see the obvious major crack in the foundation that's going to cost you thousands, quit your crying :( If you are new to flipping investment properties for retail, it may make you wonder "can I do this?" The short answer is yes, I think that almost everyone that has a desire to flip houses and has a solid coach and plan can get started flipping properties. But what makes a successful flipper? In this short article we are going to cover a few things that will help you in making sure you are on the right path with your real estate investment business. Planning For Your Flip PropertyIn our post "Should You Start With Fix And Flips Or Buy And Holds?" we stated that fix and flip is our recommended path for new investors because of the cash that can be generated quickly. Then using the excess cash earned from those properties to use for buy and holds. But how do you make ensure that your next or first fix and flip is profitable? Teresa Mears wrote an article on US News that gives a few good tips on setting out on the right foot:
First, hiring good contractors. This is a must. Talk to other investors and get recommendations from them. You have to remember that you CAN'T pay retail prices and make a decent profit. There are a lot of contractors out there, some good and some bad. Hopefully you investor friends will have some good contacts they are willing to share. Word of caution here though, even good contractors can go bad, so make sure you are comfortable with them before hiring them. Next, we want to touch on buying in the right neighborhoods. Just like rentals, you want to make sure you are buying in the right part of town. No war zones, and stay away from busy streets. Check the local surroundings such as schools and shopping centers and super markets. If you can, talk to the neighbors and ask them what they think about the neighborhood before you buy. DIY Some Of The Repairs Yourself?The last thing, doing some of the work yourself. Paul Esajian just wrote an article that gives some advice on doing some repairs yourself:
We like this tip from Paul. Being able to change or install a light fixture or ceiling fan is a great way to help save on your rehab costs. Sometimes we go through and do all of the light fixtures ourselves when rehabbing a property. Important note though, if you are not comfortable with wiring, leave it to a professional! Paul also lists tiling. If you have never tiled before, you may not want to experiment on your fix and flip. Maybe experiment at your own house first, then if you feel comfortable, do it on your rehab. Paul also lists painting. This one we tend not to do. Painting the entire interior of a home can be time consuming because it really needs to be done correctly. The last thing you want is a sloppy looking paint job with wall paint on the trim or vice versa when a potential buyer is looking at the property. Important Point To Remember On DIYThere is one thing that we want to cover about doing repairs yourself on properties, and it applies to any business that you are involved in. You need to carefully consider the cost of you performing the repairs yourself. What do we mean by that? You need to ask yourself this, "how much will this cost an hour to have done vs how much am I worth an hour?" Should you really be doing jobs that cost only $10 an hour when you could be doing something else that can earn you $100 an hour?! We will touch more on this in another post. Summing It Up If you want a solid foundation before getting into house flipping, talk to some other local investors, see if they will give you recommendations on contractors. From time to time you may want to do some of the repairs yourself, when it makes sense and you have the knowledge and tools to do the job properly. And lastly, make sure you are buying in the right neighborhoods, go ahead and talk to the neighbors and listen to what they say about the neighborhood and shopping centers. If you are in the market for discounted investment properties in Atlanta GA, make sure to check out our site! Until next time :)
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