Facebook
X
Pinterest
Copy Link
We’ve all watched home renovation TV shows at one point or another. You know, the ones where real estate investors buy houses that look like no one would dare live in them and then turn them into jaw-dropping dream homes? In the best-case scenario, investing in those homes actually makes them a profit despite how much money they spent to get the home and renovate it.
.
This process is referred to as house flipping in the real world. Unfortunately, in reality, it’s not as easy or as glamorous as it looks on TV. Regardless, it is a real way to make money if you know what you’re doing. Keep reading to learn more about the fix + flip trend!
.
What Is House Flipping?
House flipping is a process in which someone buys real estate, owns it for a short period of time, and then hopefully sells it for profit. Basically, in this scenario, instead of purchasing a home so you can live in it or give it to your children, you’re participating in one of the many strategies for investing in real estate.
.
Of course, this is all easier said than done. Sometimes flipping a house doesn’t happen quickly, and owners have to make a ton of renovations and repairs before they’re even able to consider selling the property. Other times, they may own a home for a long time and wait for the perfect moment to sell it and make a profit. The ultimate goal is to buy low and sell high, just like with any other investment. The tricky part is selling the property in a relatively short time — typically less than a year.
.
Fix + Flip Example
To make the house flipping process more understandable, let’s take a look at one recent example from beautiful Camano Island. In the summer of 2021, a property in Camano Island (366 E Selkirk Dr) was listed for sale by Kevin Flynn at $450,000, and it sold for the same price. This is the start of the flip!
.
On March 10th, 2022, the property was once again listed for sale, and the price requested was $665,000. A month later, the property on Camano Island was sold for $685,000 by the new owners. In this example, the real estate investors earned over $200,000 from flipping this home (before accounting for the price of the renovations), and they made that money in less than a year.
366 E Selkirk before the remodel
366 E Selkirk after the remodel
.
How Can You Get Started?
If house flipping sounds like something you might be interested in doing, then let’s take a look at how you can get started if you have zero experience in the real estate field.
.
Set a Budget
The first thing you need to consider is whether you can comfortably afford to invest in real estate or not. In most cases, people underestimate the cost, so it’s a good idea to play it on the safe side and plan for much higher prices than expected.
.
Look for the Right Property
Look for a property that fits your budget with marketable qualities that could be highlighted with a little bit of work on your end. Consider browsing for such properties through auctions, short sales, and foreclosures. Another good tip is to try to find an experienced real estate agent that will help you navigate the house flipping process.
.
Make an Offer
Once you’ve found a property you like, it’s time to make an offer. It’s a good idea here to have an agent’s help so you can stay within your budget. And remember, if it doesn’t work on the first try, that doesn’t mean you should give up — just keep looking for good opportunities.
.
Have a Timeline
Not all renovations have to take years. Set a timeline and ensure all the needed repairs and renovations can be done within it. If you’re flipping a home as an investment, you’ll likely want to have the house resold within a year, or preferably less.
.
Work With Contractors You Trust
Unless you can do renovations and all sorts of repairs by yourself, you will likely need to hire a construction team and other specialists to do the job for you. It’s good to either work with people that are recommended to you by people you trust (friends, relatives) or to find a construction company with good reviews, all needed licenses, and an ability to meet your timeline.
.
Sell the Property
Once you’re done with the renovations and think the right time has come, you have to make the sale. You can choose to work with a real estate agent who can find buyers and expand your reach. Visit our landing page to find a local agent.
.
In Conclusion
If you like the idea of making money from real estate, house flipping might be a suitable investment for you. If you have the time, energy, and money to put into fixing and flipping a house, you could make a pretty profit in a short amount of time. Remember to take the proper precautions and do your research ahead of time, as house flipping can also be a risky investment!
