You’ve seen them on TV, and maybe even in your own neighborhood. Home flippers are everywhere. But what’s their secret? Can anyone really turn a profit in this market? With the right approach and technical skills at your side, the answer is “absolutely.”
Home buying has become far more complicated than in the past. It’s easy to get duped into a bad deal in real estate, and it’s all because sellers don’t want you to have all the information available in order to take advantage of the smart price. Homeowners have, for years, thought of their properties as a long term investment. The concept of “buy young, sell old” has stuck with generations of homeowners. But the margins are too low. Homeowners who live in their houses for years or decades must contend with roof replacements, water damage, painting the exteriors, and even curb appeal issues.
Take Advantage of a Smart Price
‘Smart Price’ is the metric used by nalula.com, a disrupter of commonality in the home buying industry. The major issue in real estate is the fluctuating market conditions. It’s incredibly difficult to discern both a seller’s attitude and priorities, and the overall state of the local market at any given time. Nalula is the solution to this uncertainty. Smart Price metrics take into account the available inventory, both the newest and oldest price data, and fair market value in a given locality in order to calculate a fair deal and a smart price that you should hope to pay for the property.
Taking in additional factors like market saturation and price per square foot can give you a major edge when evaluating a property for flipping. Often, these skills come from years of experience, but if you begin to incorporate technical analysis now you can cut out a long arc of mediocre performance while shortening the learning curve. Understanding the data that makes a seller tick can help you assess whether the homeowner is trying to stiff you with a bad deal, and more importantly, based on his or her approach, whether or not you can expect to get a great return when it comes time to resell the property yourself.
Expand your Toolkit
While buying high potential properties for basement prices is the name of the game, it takes more than a good deal to keep you in the black when flipping homes. Real estate all across the country, from sunny Oahu cities to the Pittsburgh area, has unique challenges that demand routine upkeep. The trouble, of course, is that getting a good deal on a new home means that there could be some significant issues to contend with before you can even think about turning a profit.
Fixing leaks, roof repairs, and structural support may all be within your future if you don’t schedule an appraisal before buying. However, even with some major overhaul, most homes still carry great potential for profit. Getting a free estimate for work that must be done might be your best bet for evaluating a Pittsburgh roofing job before winter strikes and worsens the damage already done.
No matter the roof system or siding installation, it’s important to make sure it’s durable and can withstand debris and bad weather, especially if it’s your first time flipping a house. Roof problems, in particular, can turn away customers in the blink of an eye. Get a roof inspection so you have an idea of how much you might have to spend to make the necessary repairs.
Flipping houses takes hard work and dedication, but it’s intensely rewarding, both personally and financially. Get your tools in order and explode that profit margin!