5 Must Do’s when Flipping a House
The process to Flip a house or ‘Flipping a House’ is not as easy as they make it look on HGTV. It is much more than just Buy, Remodel, Sell as many seem to think. Take a minute and read through our 5 Must Do’s when Flipping a House!
1. A Group of Pro’s for your Flip
Flipping a house is a major undertaking and if you don’t have the right professionals to get you through all areas of the project, you’ll find yourself up shit creek without a paddle.. or so to speak. First you’ll want to make sure you have a good real estate agent to help you prepare your purchase and research the area. Second, consider interviewing a few attorneys’ to support you through legal documents, make sure you have discussed with this your accountant about the ramifications behind buying and selling for a profit. If plans are required for the flip, start seeking out Architects and/or Design specialists first as this will be step one in getting the ball rolling in the permit process.
2. Find a good General Contractor!
Having a good General Contractor can make or break your Flip! Make sure you at interview and discuss the project with a few and qualify each of the GC’s you speak with by researching their license and insurances are all up-to-date and active. Also keep in mind that you are choosing a professional but also a partner. You’ll be hiring the GC to complete the Flip, but will be relying on him or her to be there day in and day out to manage subcontractors and make sure this project stays on track! Find a qualified GC and make sure you like and trust them!
3. Have a Good Lay of the Land
Knowing your neighborhood is crucial to making your flip successful. Make sure your real estate agent shows you all the comps in the area that are actual comps, meaning more or less same sq footage, # of bed/baths and recent sales only, not what is currently on the market. Find out what the Retail Value is of your property (price you can sell it for when completed) and then make sure you’re able to complete the work and sell for a profit given your area!
4. Never under estimate the Estimator
Find yourself a GOOD estimator and walk through the entire project with them at least twice. Go through each room, ask them to measure for sq footage to calculate new flooring, baseboards, make sure to note if Electrical is ok, plumbing and AC unit. Check Roof, windows, doors, yard condition, fence needed? All of these things are going to be very important when finding out what your estimate is to complete the remodel and then when you have your number, add 30%. Things always go wrong in Flips and you’ll find you almost ALWAYS under-bid the price to complete everything which costs you money in the end!
5. It’s ALL in the Details!
Making a Flip successful starts with details and ends with the details. You need to buy at a good price, you need to know all the details of the flip to get an accurate estimate, and when doing the work, do NOT cut corners! When you try to sell it people will ask why you put that super cheap tile they saw on clearance at Home Depot that looks like sh*t. Don’t do it, get good materials, don’t cut corners and pay attention to the Details!