Housing fixing refers to a process when a real estate investor purchases a distressed house or property, fix and renovate it, and sell it at a profit afterward. House flipping, on the other hand, refers to buying a property at a discount price, usually at auctions, foreclosures or probate. The investor then waits for a few months to reach it at the market value and then resell it with a higher profit margin.
Investing in houses for fix-and-flip seems quite simple but is actually a backbreaking process. This process can be risky and you can lose everything you own by making just a single bad decision. National Wealth Builders knows how critical this decision can be. So, we have made a list of some useful tips and tricks to help you out through this, which is as follows:
Research well before making decision
You should keep an eye on the newly available opportunities in the market. Keep an eye on the public tax reports to find about delinquent owners and keep checking the news for the finding of properties at auction or foreclosures. You should research the market trends to know about the right price to offer.
Look for a great location
The main purpose of doing this hard-work is to earn a handsome amount by reselling the renovated house. Don’t go in stagnant markets where you may find a house at a discounted price but will not find any potential buyers afterward. Hence you should choose the location wisely to invest in.
Excellent negotiation
You have to be very good at negotiations, be it with sellers, contractors, or buyers. Offer less in the first place and then negotiate up. The key to success in this field is to pay the right amount to the right person and try to buffer your budgets.
Do the calculations
Make sure that you are buying well below the market value as you have to invest in the renovation too to earn a maximum profit. Do the required calculations regarding purchasing, rehab and reselling of the house before making any decision.
Plan exit strategies
After making a deal to buy the house, you may realize that you have made the wrong decision. For this situation, you should plan an exit strategy. You can resell the house at a loss and go for other options.
We know the importance of the right decision and have a team of professionals to do all this work. Your money will be secured in our projects and will provide you the opportunity to earn maximum returns.