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5 Tips for faster flips

Quickly and effectively flipping a property can be a lucrative and smart endeavor. However, the more time you put into brewing a plan of action and strategizing how effectively you are going to invest money into flipping the property can fetch you a fine return on investment.

The issue is, there are never guarantees that flipping a house quickly can get you a high return. You have to understand that there is going to be a lot of work that you will have to put in. You have to be thorough in how you scope out the property in the least amount of time. If you are reckless with investing money into remodeling or repairing houses, you have seen yourself in the deep at the end of the cash pool when everything is said and done. 

So, before moving on to the best tips and strategies for flipping a house in short window of time, it is vital to first keep the pros and cons in mind.

Pros of flipping a property

Before you begin planning and committing yourself to this project, it is best to do all your homework on the matter. However, one thing will always remain a constant in this endeavor, and that is taking all the risks. But if you are thorough, calculating, realistic, and implement all the best practices, you can get away with a high return on your investment. Without further here are some advantages of flipping a property:

·         The chance to make some quick cash - The primary goal of flipping a property is the lure to make a profit in the shortest amount of time. If you do everything right, a house flip can offer chances of making a massive bundle of cash. Moreover, you can lay your hands on the profit relatively quickly (in a matter of months).

·         Getting all the buyer insights - One you make the real estate flip and put the property up for sale, you will be adequately positioned to understand what exactly buyers are looking for. It is essential that you take all the necessary notes pertaining to buyer likes and dislikes. This is going to help you smooth things over when you flip another property.

·         Streamlined budgeting - One of the best advantages of flipping a property is the fact you will be able to understand various unanticipated costs. These can be in the form of building permits, delays in construction, delays in material supply, disputes amongst contractors, etc. Flipping real estate will help you factor in all these costs for your next project.

The cons

The main complication in flipping real estate is that when it becomes a flop, you will end up losing all your investment, and make no profit at all. There a couple of reasons why this may happen:

·         Unforeseen expenditure - These are expenses that you don't consider budgeting for like building permits, material delays and costs, and extra renovation costs. If you are not careful, you will end up investing more money than you could have saved, the expenses will keep piling up. Moreover, if the market is soft, you may even be compelled to sell the flipped property at a concession, which can tear up your bottom line.

·         Increased taxes - Once you are done with flipping the real estate, you have to be wary of whether the city will raise real taxes or not. If that happens, it will be a challenge to find the right buyer for the property. Worst, you may have to pay the taxes yourself, which is going to adversely affect your bottom line.

5 strategies to flipping real estate more effectively

1.      Partner up with an experienced real estate professional

If you aren't an experienced or licensed property manager or agent, don't go diving into flipping properties without one. You see, this isn't a case where you can experiment on things, you are going to be investing a lot of money. So, you have to drive more value. Collaborating with top mortgage lenders in Dallas can help lessen the burden while you can focus on performing the tasks that you can. A real estate agent will help promote and market the house, get potential buyers in for viewings, and deal with the contracts required to sell the house.

2.      First impressions are important

Once you have flipped the property, it is vital to have professional cleaners comb through everything. Make sure the interior and the exterior look pristine and highly presentable. Curb appeal greatly matters. You can start by ensuring the landscaping is neat, the bushes and trees trimmed. Plant some seasonal flowers to drive more visual appealing aesthetics. The same goes for investing in the right furniture that complements the interior and goes well with the paint.

3.      Be realistic when putting a price on the house

The number one thing that is going to either make or break your deal is the price point of the property. Never think about how you can make the best profits while competing in a hot market. If the price is high, potential buyers will consider moving on to another property.

However, that is not to say that you can't do a little negotiation or push the envelope a bit, but if you are too ambitious with the price, the deal will fall through. You are the main objective to attract the right buyer and sell the property as fast as you can while making a profit. This is also where a real estate professional can help you.

4.      Reevaluate the price of the house

Consider skimming the price if you see that people aren't taking an interest. But don't do that without consulting your real estate agent. If the professional analyzes that the market activity is on the down-low, then go ahead and drop the price. If you are not getting any hits, come up with fresh marketing plans every other week.

5.      Settle with the best offer on your flip

While a high-profit margin is an attractive prospect, it is vital to exercise caution when the time comes to close a deal. You must carry out the necessary due diligence to make sure the terms of the deal are legal and make sense. You have to ensure that the buyer has proof of funds or financing.

The Bottom Line

Expert real estate flippers understand that value of time; there are plenty of factors that go into flipping a house and a lot of decisions to be made. While it is a wise move to partner with a credible real estate agent, ensure that you also implement these tips to drive the best return on your investment.

Author Bio

Audrey Throne is the mother of a 3-year old and a professional blogger by choice. Throne is passionate about lifestyle, business, automotive, technology and management and blogs frequently on these topics.

Find her on Twitter: @audrey_throne.
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