Profitable House Flipping – 6 Key Aspects to Get Right
House flipping involves buying a property at a discounted price, improving it in some way, and immediately selling it for a profit.
Popular cable TV shows make flipping look like an easy way to make thousands of dollars quickly. Of course, these “reality” shows are for entertainment. The reality is that house flipping is a business endeavor and it’s much easier to lose money than it is to make a fortune flipping properties.
Flipping can result in a nice payday if you know what you’re doing.
Here’s a peek inside what it takes to profitably flip properties.
1. Finding Deals
It all starts here. House flippers need to acquire the right property at the right price. Finding those properties requires having multiple sources, like the MLS, wholesalers, auctions, foreclosures, short sale negotiators, and your real estate network. And it involves intimately understanding the market so you can quickly distinguish a deal from a money pit.
Real estate is local, and since you can’t possibly know enough to find good deals in every neighborhood, narrowing your search is key to efficiently getting deals under contract.
Experienced flippers seek out properties that satisfy the 70% rule, which means buying the property at 70% of the after repair value (ARV) minus rehab costs. For example, a house flipper would offer $112,000 for a home with a resale value of $200,000 that will take $40,000 in rehab costs ($200,000 x 70% – $40,000 = $112,000).
The 70% rule is simply a rule of thumb to do a quick evaluation, not a guarantee of profits. In this example, it looks like the flipper is pocketing a profit of $48,000, which may sound extremely lucrative. But it doesn’t take into account many costs involved in the house flipping process, such as taxes, holding costs, financing expenses, and selling costs.
7¢ Skip Tracing – Guaranteed lowest price on the market for the best quality data.
Don’t just take our word for it. Try us out by running a small list first to see the tier 1 data for yourself. We are offering non-members access to member pricing, so you can experience the Skip Force Difference and improve the quality of your lists.
Pay wholesale price for quality data
Receive the TOP 3 Phone Numbers
Discover which phone numbers are best
Learn the BEST Time to reach a contact
We can take your old list, grade it and come up with the
BEST NUMBERS to contact
Develop a SNIPER MARKETING Plan
Increase ROI and TEAM MORALE
We have extended this special but cannot afford to keep this offer running for long.
Have Questions? Reach out to us, we’re here to help.
Call us at: 866-962-8190
“Skip tracing” is the process of locating a person’s whereabouts. If you’re in real estate, skip tracing allows you to find motivated sellers for great deals. By skip tracing you’ll be able to get listing, wholesale, or investments faster. How Does Skip Tracing Help In Real Estate? Let’s say you have a list of foreclosures. […]
Skip Force Drilling One Skip Force Drilling One – Interesting people are interested. Why did he say that? Because people tend to always talk about themselves. Right. What? You want to listen to someone who keeps bragging about himself? No. Right. You want to brag about yourself, too. So mirroring actually is the way is […]
SF Pricing Explained SF Pricing Explained – We have multiple options with our skip tracing and property data services. I’m going to break it down for you so you can make the best decision for your business. For skip tracing, there’s member pricing and nonmember pricing. Now you’re going to get the same data for […]