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Yep, I was a flipper….rehabber, wholesaler…whatever you want to call it……I most likely did it and paid taxes for it. Here are some of my tips for making money on a flip, instead of making it a flop.
- Avoid auction properties
- Focus on finding problems, not properties
- Control the closing procedures and the title process when you buy
- ALWAYS obtain a municipal lien search
- Always check for code violations unpermitted work and open permits
- Be sure you get a reissue credit when you sell from the policy you bought at the time of purchase
- Buy in a great neighborhood, be sure to buy the ugliest house in the area, not the prettiest one.
- Share your buying criteria with both Realtors and Wholesalers….be specific and deals will be brought to you.
- Make sure that everyone on your team can eat…..everyone deserves to get paid if they do a great job. If you pay them well you then can demand a great job!
- Buy vacant home insurance. A traditional homeowners policy affords NO COVERAGE if the home is not occupied
- Insist on quality finishes and excellent craftsmanship, your buyer deserves it (and therefore you sell for top dollar)
- Be sure to rehab to FHA Guidelines, things like GFCI receptacles matter. Water leaks need to be fixed and the surrounding areas thoroughly dried out.
- Avoid red mulch, make the front yard POP!!!
- Hire a Realtor…unless you are a marketing expert and negotiations expert. You can’t do it all, and when selling a house are you writing checks or cashing them?
- Offer Seller Financing, this alone will bombard you with potential buyers. When there are lots of people interested in the home and auction-like environment is created.
- Educate the appraiser about your home, they cannot see behind walls
Are you in need of help getting started or trying to figure out what to invest in? Reach out to Tyler via cashflowguys.com/asktyler for a 30-minute consultation to help you get moving on building your financial future.