Getting Involved with Fix & Flip Real Estate
If you’ve been thinking about getting into this potentially lucrative market, one of the first recommendations I have is to find a reliable remodeling company at your disposal. Although the typical fix and flip repairs are minor, (ones you can perform yourself,) you could still run into some snags.
To be successful in the Fix & Flip market, you must be good “deal finder”. This is where your Real Estate Broker may be able to help you! Contact me to learn more.
It may take some time to recruit good make over designers. If you don’t know anyone, ask your Realtor for some referrals. Also, friends and family usually can provide you with some leads. Begin networking and talking to tradesmen. You can schedule them to check out your ugly home, then watch the transformation begin.
Avoiding Money Pits
One way to avoid purchasing a potential “money pit” is to make sure that three areas of the house are in good working condition: electrical, plumbing and heating/cooling systems.
Other areas to pay close attention to are: roofing, foundation and the home’s structural integrity. Remember to stay away from foreclosures that have problems in these areas, because your return on investment won’t be substantial enough to make it worth your while.
It’s a good idea to find a foreclosure or short sale with simple “cosmetic” problems. Find a reliable remodeling company and use the following procedure to turn over your investment fast.
Five Steps to Fixing Your Investment
1. Order a dumpster for a week and throw out everything – including the kitchen sink. In other words, clear the house out.
2. After you’ve cleared the house of debris, it’s time to start patching and painting. Let your painters blast the house inside and out with their airless paint-spraying arsenal. Within a few days, you’ll have added a huge improvement to your investment.
3. When the painting is done, the flooring people can lay tile and carpet, which should take two to three days.
4. Next bring in the cabinet installers and handyman plumber.
5. Finally, bring in the light fixtures, vanities, toilets, sinks, doors, switch plates and outlet covers. And boom! You’re done!