House flipping has become a method for earning large amounts of money from a single project. Within the last couple of years, house flipping has become infinitely more popular, particularly in metropolitan areas. People who choose to flip a house can sometimes earn over 300 percent the original amount they paid. The increase in house flipping can be seen in the popularity of HGTV’s Flip or Flop. Many are attracted to the idea of making money through flipping houses, but make sure you understand the basics before investing in it. There are also various ways to go about flipping homes than the traditional “fix and flip,” so you should know what your options are before deciding on the method you’d like to try.
Flip older homes
Fewer new homes than ever are being built, so your best bet would be to locate a foreclosed older home with character. Older homes often have unique details that homebuyers love and these increase the value of the property when you decide to sell. Before you buy an older home, make sure it’s structurally sound and you’re prepared for the needed renovations. Older homes often require more work to modernize and make particularly attractive. There can be underlying issues that aren’t initially apparent, so carefully look into the history of the home and examine each room before you purchase to check for any major issues you aren’t prepared to fix.
Scouting
If you’re a bit wary of completely flipping a house and aren’t sure you have the funds or skill, consider dipping your feet into the industry through scouting. A scout is someone who will search out dilapidated homes or foreclosure deals and then gather information. You’re the main point of initial contact between the seller and the party that’s interested in actually flipping the home. Scouts can make a few hundred dollars just for finding the home and getting pertinent information. It’s a great way to seek advice from house flippers and see what it’s actually like without having to purchase a home yourself
Sell “as is”
Some people forego flipping altogether and just purchase the house then sell it again. While your profit will not be close to what you could make from genuine house flipping, you can still make a few thousand, especially if the house isn’t too bad and you got to it before other people found the deal. If it’s in a desirable location, you’ll be able to sell it quickly for a slight profit.
Make a partnership
This method is good for people who aren’t sure they have the funds to flip a home on their own. Find someone you trust who is experienced at flipping homes or also interested in doing so. Between the two of you, you’ll be able to buy a house, renovate, flip it, and then split the profits 50/50. You won’t make as much, but you’ll at least be able to begin flipping homes and getting valuable experience.