Updated: Jul 7, 2021
Building an empire is like a puzzle, so like flipping houses. The pieces are the steps thus if you missed one, you wouldn't be able to flip successfully.
What are the processes? What are the requirements? Where do you even start? Well, these are just some of the questions commonly asked when venturing into real estate flipping; few of the many, perhaps. Okay, let's dwell on details.
How do you even start on a project?
Starting on a project like this requires patience and a thorough understanding of what you want to do and what you want to achieve. Yes, you read it right. It may sound cliché tho, but that will keep you on the right track.
Either you are new to this field or not, you must not take advantage of the following steps:
Get to know what flipping a house is all about
Do your research. Go in detail. Feed your mind with accurate information and learn from expanding your connections. You may seek advice from flippers and investors who've been in the business for years.
Be ready on what responsibilities real estate flipping houses has in-store for you. With "prepare" it means that you have to be financially, mentally, and physically ready. Remember, venturing into this type of investment takes time; you can't just sit and expect a top-hole result.
Find partners you can and would like to work with
Flipping houses is not a one-man job. You will need to work with people, and they are not just random people but professional ones. You wouldn't want to risk your investment for sloppy work, right? Then, working with a realtor and even lenders if you don't have much capital to finance your projects comes in.
Look for the best deal
Once you've decided which property you would like to fix and flip, it's time to move forward and start your deal right. This step includes but is not limited to making an offer to moving over to either an escrow company/title or an attorney and few processes in-between.
Ready for the real battle? The real show is about to start! Flipping in three, two, one...
Prepare for the Flip
This is where you set the stage for flipping houses. This step includes but is not limited to inspection, planning, finding designers and contractors to work with, due diligence settlement, and most importantly, closing on the property. But wait, there's more! Fasten your seatbelts; the flipping work is about to take off.
Flip your property
Hooray! Congratulations, you are now the property owner! Oops, don't get too overwhelmed because you haven't started the real deal. To ensure that everything is running smoothly, organize your schedule. Everything must be all set, both of you and your contractor must be ready to dive in on day one. There's no room for wasting time. Yup! With flipping houses, time is precious. You wouldn't want to spend the remaining years of your life flipping one house. Remember, it won't cost you a penny if you strive hard, but it will cost you more when all you did is just sit but ask for a combo meal if that makes sense.
Let's dig deeper. The following are just some of the basic, but mind you, vital things to consider as you start flipping houses:
Securing Lock Box
Reaching out to the Structural Engineer
Acquiring framing materials
Plumbing, HVAC, Electrical
Final Permit Inspection
Property Sale Closing Date
And a lot more in-between. These are just a snapshot of how the process works; behind all these listed steps are the in-betweens. It may look easy but, the actual work may not work as planned. Along the way, you will encounter some changes, and such might affect the schedule and timeline however, it's part of the process. There's no such thing as a perfect plan; it's the proper execution.
Flipping houses is like choosing which resto you would like to eat, choosing which property to invest with matters. It's not just about buying everything on the menu. A wise investor is a successful investor; remember that. Thus, digging deeper on properties will get you to places, might as well choose the right one.