How many home renovation shows are there on television right now? Turn to HGTV right now and I bet you will find one. Flip or Flop, Property Brothers and many other similar shows have given the general public the idea that "I can do that." The fact of the matter is that it is just not as easy as it looks on TV. Here are my Top 5 Tips to Flip:
- KNOW YOUR LEVEL - If you have never flipped a house before, the first thing you need to do is seek help right away. Knowing your level is about understanding how much you know about the process you are about to engage in. Seeking help first involves the help of a realtor® experienced with investment properties. They will help you find the best deal to give you the most potential return on your future investment.
- LOCATION - There is a reason why some properties are priced so low. Sometimes it's because they are in horrendous shape and need a ton of work, but sometimes it's because their location presents a unique challenge for a buyer - on a busy road, next to a loud school, close to railroad tracks. You can renovate a home in need of work, but you can't renovate a location. A beautifully renovated interior and exterior can still be hamstrung if you have to back out of your driveway onto the busiest road in your town.
- HAVE A CREW - If you don't have a crew, you aren't ready to flip a home. If you don't know anyone in the business of home renovation and plan to just ask friends, read reviews and look online, you won't make any money because you will overpay for everything. You need to nurture relationships with local businesses, contractors, plumbers, etc. so that you have a level of trust established going in. If you just hand over your first flip to a general contractor, you just lost control of your investment.
- TIME FRAME - Have one and stick to it. Mine is 60 days, but in order to flip a home in 60 days you need to know your level, have a crew and you need to be organized and accountable. The weather plays a role, other jobs pop up for your workers and things generally take longer than expected to get done, but if you keep on top of your time frame, you will keep control of your flip.
- KNOWLEDGE - Know the market. Know the block. Know the comps. Know your competition. Know your crew. Know your neighbors. Know your level. Know your negatives. Know your goal. Know your time frame. Know that cutting corners will always come back to haunt you. Know that you will succeed.
Watch my Periscope replay on My Top 5 Tips to Flip.
I am a dedicated father of two, aesthetically inclined and art forward, and a proponent of healthy living. I am also a realtor®/e-PRO®/trainer with Berkshire Hathaway HomeServices New Jersey Properties in Montclair, New Jersey.
Feel free to visit my website for more information on real estate. To connect on social media, you can follow me on LinkedIn, tweet me @realtorgreene, follow me on Instagram @greenelivingbhhsnj or check out my Pinterest page @iamgreene.
This post first appeared on my LinkedIn Pulse blog on September 7, 2015.