1. Know your market.
It is possible to make money by flipping houses, but not in every area and not in a falling market. You have to stay up to date with not only your local real estate market but also the national market. House prices may have been on the decline for the past 12 months but you will always find pockets that are on the rise if you study the market and look hard enough.
You have to use your imagination to see something that isn’t there yet. Visualise that new kitchen, new carpet, that perfect landscaped garden, a fresh coat of paint. If you can see what will be before it’s done, you have a huge advantage over the majority of the market, because most people struggle to see, what they can create.
3. Stick to your budget.
I see too many times, people are trying to make money by flipping houses and they’re spending $50,000 on a new kitchen to attract that perfect buyer. There is so much you can do without spending a lot of money. It’s those simple things that buyers see before a new granite benchtop, it’s the beautifully presented facade or the perfect landscaped gardens. Spend your money wisely.
4. Get your hands dirty.
If you’re planning on making good money by flipping houses, you had better be willing to get your hands dirty, because those trade bills can add up. You don’t have to be skilled to paint, landscape, clean or style, not to mention a number of other bits and pieces you can learn to do with a few youtube clips and a bit of common sense.
5. Be prepared to lease the property.
Sure, you may be able to sell at a great return if the market is moving in the right direction, but if not you should be prepared to lease the property as a worst-case scenario. This can increase your profits in the next year or two without selling at a price that doesn’t make you ecstatic.
This is an obvious one, you know that the location is one of the most important keys to making money in real estate. However, where you can get ahead of the market is buying on the outskirts of a suburb that is really booming. For whatever reason, there are always certain suburbs that get hot, while the suburb next door hasn’t quite reached the peaks that its neighbour has. Get smart and get ahead of where the market moves are heading next.