The best thing about fix and flip investing is that you can start it any point of time in your life, irrespective of your job or experience or credit scores. As long as you don’t have any judgments and aren’t warranted by the FBI, you are good to go.
So, these are some of the basic pre-requisite… But is it recommended jumping into fix and flip business without any leash to hold on to? No!
Like any other job, it’s important that you do some homework and have a support system while investing in real estate.
If you are planning to buy a fix and flip property for investment purposes, few things that could help you are:
Evaluate the Property before buying – Make sure that you have done your due diligence. Don’t get emotional while buying a property. Check the neighborhood and draw comparables with the recently sold or listed properties. There are many areas in every city where investing could be a bit tricky because of high crime rates and other reasons. Figure out how hard or easy it would be to rent or sell the property after the fix and flip.
Budget Properly – It is very easy to get carried away with the fix and flip. Therefore, it’s important that you budget everything comprehensively. Look at the houses in your neighborhood and install the same kind of amenities in your house. Do not go overboard. If you are planning to get a loan, do your research and talk to different lenders before finalizing it.
Work with someone – If you are a novice, try to find someone who has some experience in fixing and flipping in your area; especially for your first deal. You can hire them for consulting or share profits depending upon your needs.
Start with smaller Investments – If you are starting out, its a good idea to invest in a single family home in an average neighborhood. Do not start with a big investment. This will help in minimizing the risks and pressure.
Do you have any other important points to share based upon your investment experience? Please share them in the comments section below.