Home flippers are also known as real estate investors. these are basically individuals or companies that buy houses or homes with an intention of reselling them at a profit. House flipping is not as easy as it sounds, a lot of things could go wrong for there flippers. These could range from buying a property that doesn’t get bought in return to significant drop in prices of houses in a given location. On the other hand, it could be a really profitable business as these home flippers will always buy homes and houses at very low costs that are way below the prevailing market rates and sell them at the current prices or even higher depending on several factors. This is proven by the rates given by http://houstoncapitalhomebuyers.com over time.
here we take a deeper look at the 5 most important qualities that a home flipper must possess in order to be successful in this kind of trade.
1. Network of experts
as a home flipper, you need to surround yourself with a number of market professionals like lawyers, land surveyors, valuers, construction experts among many others. These individuals are the ones who understand the market and the trends in the business and could offer great insights in case things don’t go right with you.
2. Handyman or Construction experts to do the improvements
As a flipper, you will need to work closely with construction workers so that you can renovate the property and sell it within the shortest time possible. As a home flipper, if you can’t do these improvements yourself, you will be forced to enrol the services of the professionals who will give you a turnaround within the shortest time possible. Some of the improvements will usually include paint work, electrical renovations and plumbing works.
3. An in-depth understanding of the market
Real estate markets will always differ from one location to the next. As a home flipper, you will be required to understand these markets in order to maximise on the profits that you get from flipping homes. For example, you need to understand the history of the neighbourhood and the possible future, failure to this will lead to great losses or in some cases, you will find yourself with a house that you just won’t sell due to cases like insecurity and crime, pollution among others.
4. Be good at estimations
In most cases, home flipping does not need valuation reports, rather, it requires the home owner to make an offer and the home flipper to give a counter offer. After the two parties reach an agreement, a deal is struck and money changes hands and the parties sign the dotted line. it is therefore very important for anyone getting into the home flipping business to be very good at estimations and valuation. This will help you avoid cases where you overpaid for a property or you underestimated the costs of renovations and when it comes to selling it, your asking price becomes very unrealistic as you are trying to get a profit from the home as well.
5. Access to money – Lots of money
Most people who will be looking to sell their houses using house flippers do so because they want to sell in a hurry and in cash. As a home flipper, it is therefore very important to have the money in order to facilitate the buying of the house. In most cases, these deals are normally negotiated and closed with a period of less than 7 days. On very rare occasions, you may be able to flip homes without money, but for that to work you need to find a buyer for a house who is willing to give you money for buying the house upfront before they move in, which is very rare.