Beginners Tips for Flipping To Maximize your Profit

Flipping houses. Maybe you have a friend that’s done it. Or maybe you’ve read an article or two yourself and wondered how difficult it really is. You may even have heard that considerable profit can be made by flipping a house or condo. Of course, you may also have wondered how to do it right and avoid the mistakes that other beginners usually make.

As a first-time flipper, you’re right to seek out guidance. Even if you’ve flipped one or two properties, you may be analyzing your own process, looking for ways to do it better. Well, today, I have some tips for you so that you can maximize your profit and experience a smoother flip.

Put together a team

First and foremost, you’re likely not going to be tearing down drywall and knocking down walls yourself. But if you’re experienced enough, you can if you want! Putting together a team means having a number of trusted vendors at the ready to handle plumbing, electrical, and all the rest.

Learn your market

San Francisco is not Southwest Florida, and New York City is not Seattle. Every market goes through its own cycles and has its own special features. My biggest recommendation is that you don’t just turn to your local newspapers. By the time that news hits your screen, someone else has taking advantage of it. Instead, dive into the local data for your market and start connecting the dots.

Search out anomalies

Another big tip I give during my seminars is to look for the anomalies. What do anomalies look like? Well, they look different all the time! That’s what makes it so difficult for the majority of people to find them. However, these anomalies can often provide you with solid profit. One example for flipping might be the cheapest home on a block that simply needs a bit more love to move in line with the rest of the neighborhood. Those are the opportunities we look for!

Understand who your buyers are

You probably can see how adding a luxury chandelier to a retirement condo might not always make the most sense. After all, not only will that expensive item count against your budget, it might actually turn off the buyers most interested in your property. Instead, keep your buyer in mind throughout your process, whether you’re painting the walls or completely upgrading the property.

Run the numbers and price correctly

Speaking of budget… you do have a budget, right? Too many times, I’ve seen beginners enter a flip without a realistic budget set. Sure, that budget may change as the project moves forward. But keeping a close eye on your numbers, before, during, and after a flip, can mean the difference in the size of your profit.

Terry Records