Due to the increase in population, house markets have been documented as very viable sources income. Many people have ventured into this industry with only one aim: to make profit. From my experience, making profit in this industry is not a walk in the park. The industry itself has a lot of hidden but necessary requirements, which will determine if an investor attains his or her envisaged profit or wallows in devastating loss. These very details are what I overlooked and therefore failed in my Fix and Flip. Let’s see how we can avoid failure in fixing and flipping.
Before buying an old house to fix and sell. The first thing you must do is to scrutinize a variety of houses. Visit websites, buy magazines, inquire from friends until you land the best deal. All these houses will have a price, compare the prices and select the house that you believe provides the best deal. Once this is done, do a short visit for a fact finding mission, never pay for a house that you have not seen, there are certain details that might have been overlooked which could increase the costs of repair.
The next step after choosing the house and sight is conducting a financial assessment. To achieve some profit, definitely, the cost of selling must be higher than the cost of buying combined with the repair expenses. I would encourage you to seek the services of a professional auditor, I did not do that; perhaps the reason why my financial assessment completely went wrong. The financial auditor will give you a rough estimate and even provide parameters within which the price range must fall within. With $200, you will get those services. It is always better to spend a little and save more.
Another very critical thing to look at is the proficiency of the laborer. Ensure you pick an experienced contractor to undertake the repairs. The experienced contractor will even give you the necessary advice on how to reduce cost. The work will also be expedited faster and perfectly.
Finally, the location of the house is also an important tool that will determine the profit margins. Different localities have different market values. The social setting has divided areas into the rich, average and poor neighborhoods.These areas contribute a lot to both the buying price of the house to fix and flip and also selling price of the same house.Don’t give too much where it is not worthy.
To avoid failure in fix and flip, please embrace the above consideration, what I felt after making huge loses, not only brought sorrow into my life but also almost broke my marriage. Please save some time to get into the details that have been mentioned if your want a house to fix and flip.