If you've watched HGTV, gone down a YouTube rabbit hole, or talked to people you know, you probably have heard that flipping homes is a potential goldmine. About 8% of home sales recently involved property flips.
While there is a lot to be gained from flipping homes, there's also plenty to lose if you go into it haphazardly. If you're going to be successful with this project, you need to know which mistakes to avoid.
This is your guide to real estate flipping so that you can start earning some serious income in Santa Cruz.
Don't Forget to Do Your Research
The first, and most damaging mistake that people make is rushing into home flips without knowing what they are doing. This is the quickest way to lose money and spoil your appetite for real estate altogether.
The last thing you want to do is get a property that is a money pit you can't get rid of.
Do your research into flipping homes and consider taking courses and learning under people who do it for a living. Taking the time to conduct solid research will teach you the do's a don'ts and will help you sharpen your tools so that you can start earning serious real estate income.
Avoid Massive Fixer Upper
The art of flipping homes means buying low and selling high. However, it's not always worth it if you are dealing with massive fixer-uppers that are above your level of experience.
This often happens when acquiring homes from real estate auctions or other foreclosure listings. If you have to sink too much money into a property, it will eat away at all of your profits.
Keeping your profit margins is the most important aspect of real estate investing, so make sure that you set your goals upfront and choose your properties based on your ideal ROI.
Don't Do Everything Yourself
Selling a home is serious business and not the kind of thing that you want to do all by yourself.
Having the help of a professional who takes their roles and responsibilities seriously can help you make the most of any investment property. There are professional companies that can help you with accounting, marketing, negotiations, and so much more.
Let them know your goals and put together a power team of pros that can make the process easier.
Take Yourself Out of the Equation
Always remember that selling a property is about the buyer. Many people make the mistake of modifying the property based on what they would like, rather than the market.
Find out which trends are selling and keep it strictly business, rather than trying to turn it into your dream home.
Real Estate Flipping for Success
There's plenty of room for success when you're interested in real estate flipping. As long as you do your homework, study the market, and find the help of some quality pros, you can make a great career of it and build your portfolio.
PMI Santa Cruz is an excellent asset to have when you are interested in flipping real estate. For a free evaluation that can kickstart your real estate journey, contact us on our website or give us a call today at 831.471.7878.