How to Flip Houses for Beginners – The Quick-and-Easy Guide

Investing in real estate is one of the oldest means of accumulating a large amount of capital. Just remember flipping houses should be a means to an end i.e., investing in real estate. See flipping vs renting real estate for details on why flipping is not investing.

Is only just recently that “flipping” of houses – buying at a low price, renovating and selling at a higher price – became popular thanks to many new really TV show about flipping homes. For many, house flipping has become a full-time career and their primary source of income.

So, are you interested in learning what it takes to become a successful house flipper? Read on to learn how to flip houses for beginners and more about this fun and exciting way to get started in real estate.

Research Local Regulations And Legal Requirements

The first thing you’ll want to do is start researching the local regulations and requirements for house flippers. You can either go online and read through the laws or call up an experienced real estate agent and ask them. Either way, you need to know the rules of the game you’re about to enter.

Gather Resources and Build Your Team

Next, you’ll want to gather your resources – both financial and human. You will, of course, need to have some cash set aside for a down payment and all of the costs that comes with it. Use this investment calculator for optional ways to finance a project.

At minimum, you will need a real estate agent, a mortgage broker, a title company, inspector, and your renovation contractors lined up to give you bids. 

Leverage Other Peoples Time, Knowledge and Experience

If you want to be a professional flipper and make money must faster than you can spend it, then don’t do the renovation yourself. If you catch yourself with a hammer in hand more than a few minutes something is wrong. Build you real estate team and use them for maximum leverage even if you are paying more and it eats into your profit for the project. If you want make big money you have to do more than one flip; you need to set yourself up to do as many as you can reasonably in the shortest amount of time. Treat this as a business not as a hobby.

Find Good Deals to Flip

Finding a good deal is the hardest part of real estate. The competition is fierce and sellers are getting bold with higher prices since they can quickly find out what Zillow and other such unreliable sources say it’s worth. Therefore, you must have a way to find motivated sellers before they have properties on the market. This is what all of the most successful real estate investors and home flippers do.

As you get more experienced you will develop a larger network and lead will come to you from real estate agents, brokers, contractors, other homeowners, etc. However, if you are not experienced and do not have this type of network established you still must generate motivated seller leads. How can you do this you ask? 

Just like a Marine needs a rifle, a real estate professional needs this type of software to market and generate motivated sellers leads. This is the most vital tool and skill you will need to learn.

Let’s keep going with how to flip houses for beginners.

Develop An Eye for Undervalued Properties

Successful house flippers develop an eye for undervalued properties. Your goal is to find a home that is listed low but has a lot of room for improvement. The fundamentals of the property – its location, the size of the land, the home’s foundation, etc. – should be good.

Pull the Trigger – Make Your First Flip

Don’t’ delay and just say you’re going to do it, start building your team, generating list of motivated seller leads, and don’t be afraid to make offers quickly after you have assessed the property. You can always back out during your option period.

You’ve built your team, learned the rules and have started to hunt for listings. Now, you need to decide and make your move. As foreclosure rates have trended down recently, it can be hard to find the perfect opportunity. However, as this is your first flip, your goals should be centered on learning the flipping process without losing any money. Keep an open mind and don’t worry about trying to score big. Instead, buy the right home, renovate to add value and relist quickly so you can rinse and repeat.For more information on the how to flip houses for beginners, obtaining motivated seller leads and building your wealth with real estate, keep up to date with the realestatewaypro.com newsletter.