Flipping homes is a fun and exciting way to get involved in real estate investing, and many people are drawn to it for the creativity, hands-on approach, and comparatively low cost of entry.
But shows on networks like HGTV make house flipping look like a cakewalk, a montage set to upbeat music, with the occasional hiccup at best. Seasoned house flippers know this is far from the reality, and that while flipping homes can be a blast, the process can also come with some serious challenges. That can be especially true when we’re talking about flipping your first home.
Expert real estate investor Winston Deloney knows all about this, because despite his investing skills, he was once a beginner. Deloney is weighing in on the first-time-flipping debate, and pulling the curtain back to share his experience.
Doing your research is key
Before you reach for the hammer and start knocking down walls, Winston says the start of a house flip is much more demure: you need to conduct some thorough research.
You should know everything there is to know about the local real estate market, and if homes are in demand. You should know the prices that homes are going for, what the neighborhood is like, and how long houses are sitting on the market for.
This will help direct your decision about if you should pick a property to begin with and will also help you have a much easier time with the actual flip.
Make sure you understand project costs
A home may seem like an excellent deal, but if it’s going to require renovations that are outside of your budget, the entire project could flop. But how can real estate investors properly estimate a project’s expenses?
When it comes to flipping your first home, Deloney says it’s not only important to have your budget laid out, but to also account for the renovations, and then some. You never know what you’re going to find when you start digging up floorboards.
Establish a solid network
In order to be a successful house flipper, having a solid network is essential. Networking with buyers and local real estate agents will help you be connected to people who actually are interested in paying top-dollar for your home, instead of having it languish on the market, while you’re responsible for the fees.
Find someone to learn from
As with most things in life, having a mentor can be life changing, especially if you’re a beginner. Finding a seasoned house flipper in your area to learn from may seem like an intimidating idea, but the truth is, most professionals love to share what they know, as long as you make it worth their while.
Offer to help them and shadow them during a flip, in order to learn the ropes. Finding an expert to show you the way will help answer a lot of your questions.
How hard is a first flip?
According to Winston Deloney, flipping your first home can be much easier if you set yourself up for success, using the ideas he already mentioned, and many more. If you are ill-informed, don’t do your research, and go into flipping blindly, you’re basically playing roulette.
It could be a cakewalk, or it could be torturous. The moral of the story: the more prepared and educated you are, the more likely it is that your first house flip will be a breeze.
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