REAL ESTATE 101
with Linsey Taylor
Have you been thinking about flipping houses like the people on tv?
So you’ve been watching a marathon of house flipping shows like Fixer Upper and Flip or flop all weekend. And you begin to think, I could do what Joanna does. I could even look as good as Christina El Moussa while wading through piles of trash and discarded furniture. Well all of this is probably true, but what about the reality behind the reality tv shows?
Comedian or True Blue Problem Solver?
The first thing to know, is that being super funny and charismatic makes for great tv. But the key to a successful flip is being a real problem solver. Every house comes with its share of good and bad. And most often times, you have no idea what sort of “blessings” have been bestowed upon you, until you have already purchased the property. So while a good laugh is always necessary when viewing run down and forgotten homes, just know that any problem can be solved with money and sweat equity.
Finding the right house to flip.
Finding just the right house to flip is usually the hardest part of the entire process. A house that is priced low, needs minimal work, and is located in an outstanding neighborhood, is sometimes a challenging find. Beginner flippers will do this two different ways. The first is by establishing a relationship with a Realtor. One who knows the areas your looking at and whom will call you the second that low priced house becomes available. The second, is by driving those neighborhoods. When you see that house that is just right for flipping, call your agent and get a showing scheduled. Other options include bidding at auctions and looking on foreclosure websites. But I urge you to get some experience first. These transactions can be very tricky. And you can unknowingly find yourself with a new property and a string of costly liens that come with it.
One thing the tv shows don’t always tell you is how they have already budgeted for remodeling and repair costs. If you are going to flip a home and make a profit off of the sale, you must have a budget. And, do everything possible to stay within that budget. Of course once you get going with repairs, a problem is always bound to arise. The usual issues can include plumbing, roofing and foundation issues. I always prefer to have some cushion in my budget, just in case.