Step 4: Purchase a home.
After seeing property flippers on reality television, this is probably one of the steps to house flipping you’re most familiar with. If you already have your real estate license at this point, you’ll have access to the MLS and will be able to find deals on fixer-upper properties. Here are some things to think about while buying a house:
- Will you obtain financing for this home or pay the purchase price up front?
- What monthly payments can you reasonably afford if you take out a mortgage on the house after factoring in the cash expenditures of renovation?
- Will you buy this home with the assistance of real estate investors or on your own?
- What are the current property value trends in the locations where you’re looking?
Step 5: Remodel the home.
It’s now time to refurbish! It’s critical to keep within your budget when upgrading to profit when you sell your home. Here are some pointers to assist you to save money during this stage:
Make a budget.
Choose a cashback credit card or a credit card with high rewards points on business purchases. Reuse or purchase used salvaged items from other house flippers. Stick to timeless designs that will sell well. When accepting bids from contractors, take your time to choose the best one. Be explicit with your initial budget so you can get an exact quote immediately. Decide where you’ll splurge and where you’ll save money.
Step 6: Sell and make a profit.
You must always pay a 2 percent to 3 percent fee to the agent who shows up with a buyer. On the other hand, a real estate license for property flippers allows you to represent your own property, allowing you to either save money or pay yourself a listing commission.
Some brokers, but not all, will let their agents pay themselves or waive the listing commission on agent-owned properties.
According to the National Association of Realtors, the median price of a home in May 2018 was $252,800; therefore, if you operate as your listing agent, you’ll save $5,056 to $7,584, which might mean the difference between earning a profit, breaking even, or losing money on a flip. Is a real estate license required to flip houses?
