House flipping is a great option to use as a compoundable investment. A house purchased for $100,000 and sold for $140,000 would have an example of a 25% increase in value. This means the owner could sell the property again after a few months and earn a potential profit of $40k- which can be used to purchase another property and start the process again.
House Flipping in 8 Simple Steps
Step 1:
Find a team that can help you find houses. You will need a contractor, an inspector, someone who knows homes well, a loan officer, and a realtor. They will assist you in ensuring the house is a good investment.
Step 2:
Locate a key area where you should invest your time, money, and resources. The location will be essential because it is where you should sell the house at a higher price. This means that once the investment reaches a certain point, you could buy many cheap properties in this one area and then sell them all at a higher price.
Step 3:
Make some repairs. There are high chances that the house you will be buying needs repairs, or maybe it does not have a roof or has some other problems. These are the things you must look for when buying a property to flip because if they are fixed on time, your house could be more valuable afterward. For example, you will sell the house at a higher price because it has all its utilities and amenities, such as an above ground pool, that are in good condition.
Step 4:
After you have made the house’s necessary repairs, it’s time to fix the interior. This means painting and perhaps adding new curtains, shutters, gorgeous faucets, and furniture. Your home must look good from the outside because people will expect a nice looking place after paying double its original price.
To give your home a classic and timeless look, cedar shutters are a perfect choice. They come in various sizes and can be stained to match any color scheme of your desired style. They are also great for adding texture to a home’s exterior while providing privacy and protection from the elements.
Step 5:
After you have done some renovation on the house’s exterior, it is time to move on to the interior. This means that you will have to fix whatever needs fixing and even change some details to fit your style more. Change a few tiles if needed, repaint some parts and buy new furniture for the living room if that is what your house needs.
Step 6:
Time to put the house on sale. This means you will have to use all your social media abilities and market knowledge and make a website or an online page where people can book appointments to see the house. This step should not be much of a problem for you if you are good at marketing., but if you are not that strong, then hire someone because it is crucial.
Step 7:
If you haven’t found a buyer yet, it’s time to start negotiating with multiple buyers and find out who will be willing to pay the highest price for this house. After some negotiations and perhaps even increasing the initial asking price, someone will come and offer a reasonable price, and you should accept.
Step 8:
You must go to the notary and sign all the papers needed to transfer their rights to each other. This means that after this step, your house flipping journey is over, and you will have received the money from selling this place and the money from the house you are going to buy next.
House flipping requires careful planning, lots of experience working with contractors, time management skills, and basic electrical and construction work knowledge. It is a great way to compound your income and turn into a real house flipping business that will give you money for the rest of your life!
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