Home Flipping Houses How to Flip Houses in Five Steps (With Video)

How to Flip Houses in Five Steps (With Video)

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Flipping the house is great, isn’t it?

That means it’s exciting, rewarding, liberating, and you can make a lot of money.

However, it can be dangerous if you do not follow certain steps or if you follow them in no particular order. If you’ve seen one of these “flipping shows”, you know exactly what I’m talking about. People who turned their homes over and tried to get over their heads quickly, or contractors roaming the newly refurbished hardwood floors because they weren’t properly managed.

Over the last few years, I’ve learned a lot of lessons about turning home inside out, and I believe these lessons can be summarized in five steps. Obviously, flipping through a house is a lot more complicated than a simple blog post (or video) can cover, but I hope this post serves as an “introduction” to help you find the right question.

If you are looking for a more comprehensive look of flipping house, definitely check it out Books on flipping houses and books on rehab cost estimates, Created by J Scott and released by Bigger Pockets a few months ago. These books are extended versions of what was briefly described in the video below.

Check out the video I made. It may help you understand how to start flipping a house. Below that is an enhanced version of the video in case you want to know more. Let me know your thoughts in the comments below!

How to flip a house transcript (Soruta)

OK. I want to start turning the house. I don’t blame you. Turning a house upside down can be fun, exciting and inspirational … and very dangerous if you don’t do it right.

I don’t want you to crash and burn with your real estate flipping, so let me show you the 5 steps you need to use when flipping a house.

Step 1: Plan

  • What kind of house are you going to turn over?
  • Where are you going to turn it over?
  • How do you fund this?

These are all important questions you need to answer before you start shopping at home.

You see, you need to decide where people in your community are buying a home and start from there. Three bedrooms? A big garage? Basement? What are people actually buying?When Where Are they buying?

Don’t dive inside the house until you’ve answered these questions and started planning.

Step 2 – Understand Financing

How do you pay for this flip? Most banks don’t like flipping funding, so if you don’t have cash, you may need to be creative.

One of the most common methods used to fund flips is by hard money lenders. If you plan to use a hard money lender, you should start talking to someone right now.If you don’t know the hard money lender, you can find it for free in your state Bigger Pockets Hard Money Lender Directory..

Or you can click to watch this amazing video I created on how to find a hard money lender This video link..

Now let’s move on to Step 3: Buy Smart.

When it’s time to buy real estate, old real estate doesn’t reduce it. You have to buy wisely. An easy-to-use tool is called the 70% rule and basically looks like this:

  • Know how easy it is to sell a home once it has been completely repaired.
  • Multiply that number by 70%.
  • Deduct repairs.
  • And badabingbadaboom you have a price quote you can pay.

Keep in mind that this is just a rule of thumb. Take the time to actually calculate the numbers and make sure it works … and be conservative in your estimates. If you think it will eventually sell for $ 150 to $ 170,000, estimate it to $ 140,000. Then double the repair quote and double the timeline.

Believe me – the key to success in house flipping is to be conservative. If you’re really worried about how much it will cost to fix a property, be sure to get a copy of Bigger Pockets.A book on rehabilitation cost estimatesWill be free when you get Bigger Pockets presents a book about flipping housesIf you want to get a copy and start reading now, just click on the book. Here..

Now let’s move on – it’s time for step 4: home remodeling.

If you plan to do all the work yourself, and I don’t recommend it, it’s a good idea to get started. But you probably need to hire some contractors. Make sure those contractors are licensed, guaranteed and insured.

And you have to manage your flips like a business, not a hobby. Therefore, have rules, systems, schedules, and budgets to keep everything running smoothly.

Finally, step 5 is to sell that flip.

Make sure you price your home for immediate sale. In other words, don’t be greedy. You want the house to be sold as soon as possible. Also,”DirectingYour Home – This means decorating your home with furniture, paintings, flowers, rugs, nicknack, etc. to make it look “very cute”.

Hopefully if you have a great plan, keep your numbers modest, manage your flips effectively, and sell it quickly-you can now roll on to the next flip I made a great profit that I can do.

If you enjoyed the video above, I hope you are really pleased Help me do three things:

1.) Click the “Thumbs Up Sign” on the YouTube player above to tell Google’s “Gods” that you like it.
2.) Go to the channel and[購読]Click to subscribe to this channel.
3.) And send a colleague’s request on BiggerPockets.com – a free real estate investment social network.

Oh – and definitely share this page and the video above on your Facebook wall! You may have family and friends who are interested in turning home. So this video may help them learn too (and may start a conversation between you and them that could lead to future partnerships!)

Thank you and happy flipping!

(Don’t forget to leave a comment under PS! If you can’t say I love comments!)

Photo: Johan Larsson

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