TV shows that center around fixing and flipping make it look fun, easy, and extremely profitable. So, it's likely that you've considered going into the business for yourself. Before you do, you should know that it's not going to be exactly what it looks like on TV. Below you'll find the best ways to see if fix and flip is right for you (before spending a ton of money).
Know Your Strengths
Are you good at coming up, and sticking to, budgets? Because when fixing and flipping you have to stick to the 70% rule. That just means that you should never invest more than 70% of the homes final ARV (After Repair Value). So, you'll need to be capable of figuring out the home's ARV and creating a repair budget that's only 70% of that. You know yourself better than anyone. Do you have the ability to make that budget and resist temptations to go over it? If so, you're off to a good start.
Know Your Weaknesses
Do you impulse buy? Because that's a big no-no when it comes to fixing and flipping. To find the perfect fix and flip you need to search high and low to find a house that's priced low but has the potential to be repaired and sold for a higher cost. You don't want to buy just any cheap house because sometimes they're not worth the work and will just become huge money pits. You can't make impulsive decisions. You have to do research, know the market, and know your buyers.
Know Your Situation
Do you have another source of income? You're probably going to need it in the beginning. If you're planning on making fixing and flipping your only job, then you have to be able to stay afloat for a while with no income. Fixing and flipping doesn't happen as fast as it does on TV. You have to wait for the right house listing, you have to put in a lot of time repairing the house, and then you have to wait for an offer. This could take a while.
Know Your Desires
Do you want to embark on a journey of hard but rewarding work, or do you want to get rich quick? If you think fixing and flipping is an easy way to make a ton of money, then it's probably not for you. However, if you thoroughly enjoy repairing homes, taking them from unwanted and turning them into a hot sell, then fixing and flipping could be your dream job.
Fixing and flipping can be a fun, thrilling adventure that you love to do for a very long time, or it can be a stressful nightmare. It depends on who you are and what you expect from this career. If you think you have the strengths to do this job well, and you understand that it'll be hard but rewarding work, then you might just have a very successful fixing and flipping career ahead of you. For financial assistance on your new fix and flip journey, please contact us. We look forward to being a part of your story.