Can I Make Money Flipping Houses

Dated: July 18 2016

Views: 632

Why of course you can! BUT it's not a walk in the park...

I work with several investors that make a ton of money flipping houses and the ones that make the most money know they are going to make right when they purchase the home. They don't "hope" to make $30,000 when it's all said and done, then plan to make $30,000 regardless of what they find behind the walls, under the carpets, and on the roof. Here's what I mean:

1. Know your numbers - You need to know what comparable properties have sold, and have been selling for in the immediate neighborhood. If you think you can get more for your house based on a "gut feeling" or because it's better than everything in the neighborhood so it should sell for more, you're wrong.

2. Budget - Not only should your budget be "Worst Case Scenario", but it should also include a contingency fund for things that you missed or didn't think of initially. If you don't use it, you can add it to your profit at the end!

3. Know all the costs and "costs" up front -  When calculating a budget, many people think that money for fix-ups and repairs is all you need to include. They forget or do not know about is the comprehensive list:

-Repairs/upgrades/updates

-Utilities

-Taxes and Insurance

-Cost of sale (how much you pay in realtor commissions, closing costs, and marketing fees)

-Holding costs (usually includes utilities and taxes but also includes the interest on private money)

-Interest

-Contingency fund (emergency)

FORGOTTEN COSTS IN RENO:

-Dumpster

-Inspections

-Permits

Contact me for a weekly list of REO/foreclosures and good flip houses!

chasewteam@gmail.com

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