Last Updated on February 25, 2024 by Ali Hamza
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If you’re curious about house flipping, you might see it as an easy route to a new income stream. This line of work can be profitable, but only if you make smart decisions along the way. These tips, shared below by Businve, will help you choose a house to flip, renovate it, and find the right buyer!
Choose a Business Structure
To run any kind of company, including a house-flipping business, you’ll need to choose a business structure first. You may want to register as an LLC since this status will grant you tax breaks and ensure personal asset protection. Forming an LLC requires five steps including naming your LLC, filing your Certificate of Organization, and applying for an EIN. Instead of hiring an attorney, you can save by working with a formation service.
Find the Right Property
Naturally, finding the ideal house to flip is your first step! Start looking into foreclosure databases in your area, checking out homes that are listed as “For Sale, By Owner,” attending real estate auctions, and letting your social circle know that you’re in the market for a fixer-upper. You should also work with an investor-friendly real estate agent who can keep you in the know about homes that aren’t listed on the market yet.
Obtain a Mortgage
How are you going to finance your investment? You might want to pay with cash if possible – but what if you would prefer to take out a mortgage? This is still an option, but you may need to spend some time hunting for the right lender. Making an effort to boost your credit score, and putting down a larger down payment, can lower your mortgage interest rates. Keep in mind that even if you do take out a mortgage, you will likely need to show that you have six months of cash on hand in order to purchase an investment property.
Add Attractive Features
Flipping a house means carrying out extensive renovations – but with so many options for home improvement, which types of renovations and upgrades are most important? Invest in painting the front door, installing energy-efficient appliances, turning the attic into usable space, enhancing your home’s lighting, and turning half-baths into full bathrooms.
You can also upgrade your kitchen. For example, you can install a range hood to eliminate smoke, grease, and odors when residents cook, making the air in the home cleaner. Kitchen upgrades are almost mandatory when flipping a house.
Lastly, make sure you work with a contractor that you can trust. Use a website like Thumbtack to find trusted and well-reviewed contractors in your area. Ratings and reviews from customers can help you determine who’s the best fit for your project.
Market Your Property with a Website, Social Media, and a Business Card
Marketing is a crucial aspect of finding a buyer for your flipped property. In your marketing materials and listing, you want to emphasize the improvements you made. If you create a website for your company or start social media accounts to promote listings, you may even want to design a logo. This is a great way to convey your brand and stand out from other real estate companies in a competitive market.
Also, keep this in mind: A business card is a powerful tool for promoting a house-flipping business. It provides a tangible representation of your company and can make a lasting impression on potential clients and partners. With the right design and information, a business card can be a valuable asset for networking and marketing your business. Fortunately, there are many online business card creators that make it easy to design and print professional-looking cards. By using a business card creator online, may help you customize the design to fit your brand and include all the relevant contact information.
Yes, flipping homes can be risky – if you don’t make careful choices throughout the process. You don’t want to dive into this business without a realistic picture of what it entails. Choose a business structure, find a property, get a mortgage, make home upgrades, and market and sell your property. With these tips, you’ll be prepared to buy your first investment property!