Don’t Do It Solo

In todays market more and more investors are purchasing bulk inventory for penny on the dollar and then flipping them for profit. No matter your experience, you will run into issues which you will have to address which creates stress in itself. There are several variables that will create risk when deciding to so. New investors have a tendency to overlook common issues when attempting to do it solo, and yes it shows. Though flipping is profitable, its a high risk game so new investors should seek the advice of others. If you know a real estate professional, ask them to join your team or help you navigate through the initial process.

Do Your Research

Canvass areas of interest before jumping the gun and putting an offer on a piece of property. The initial phase should start with the location. This is where you will need help with the leg work. A recommendation would be to have a buyers agent, a seasoned investor, attorney, or title company assist with this information. Your focus should be zoning restrictions, schools, public transportation, neighborhood demographics,etc.

Don’t Forget The Home Inspection

Investing in real estate requires attention to detail and time lines. Due diligence is imperative in this business. Investors should always conduct inspections even if a report is available through the listing party. If a report is offered, graciously thank them for their time and efforts. You need to be in control. There are too many variables out of your control if you accept a report from someone you are not familiar with. By doing so, It simply demonstrates your work ethic and attention to detail. Once you have decided to mover forward with scheduling the appointment, call a handful of inspectors then choose wisely. Hire someone you feel in your gut you can trust. Do not try to inspect on your own, this does not pay in the end regardless of how much you think you know! Every home is not considered equal if if they all look alike. Inspectors will look for defects from top to bottom, inside and out. Some their observations during the evaluation will include:
• Structural damage such as settling Issues
• Roofing
• Plumbing
• HVAC system
• The land
• Grading
• Drainage issues
• Retaining walls
• Pest control

A thorough evaluation will reveal issues that need to be addressed, and a really good inspector will point out future concerns regarding the property. This report will give a more accurate forecast of what your repair cost will look like.

Don’t Rush The Process

Be prepared in advance…You should have a true understanding of the housing industry. Experienced investors are aware that houses will come and go just in that order! You should never settle, chances are you will find exactly what you are looking for later on down the road. Always keep in mind some homes may lack curb appeal, or luster. You must look at each property as a whole, and that  each will have their own set of pros, and cons. A simple affordable repair like lipstick, rouge, and some yard work could turn that unattractive house into your dream home, or dream home for someone else. Good luck hunting!