6 Simple Tips for First-Time Burbank Flippers
One of the more popular real estate ventures has been house flipping. Thanks to numerous TV shows, this form of real estate investment has become a favorite among investors and for good reason. Flipping houses – buying rehabs, fixing them up and selling them – comes with a high potential for profit. If you’re thinking of getting started, here are six tips first-time Burbank flippers should know.
Make a Plan
Before you really get started, it’s important to map out a plan of attack. You need to set goals for yourself and research neighborhood comps to see what’s out there.
Setting goals will stop you from biting off more than you can chew. If you’re focusing on more cosmetic Burbank rehab projects, make sure you avoid houses with leaking roofs and questionable foundations.
You should also look at how much time and energy you’re willing to spend on each flip. Flipping can take up a lot of your time. If you’re not committed to giving a lot of time and energy, then flipping might not be right for you. You might look into rental properties or other forms of investment.
Research Markets and Properties
The smartest buyers know the markets and properties better than they know themselves. If you do your research, you’ll make smart buys and rehab decisions, and you’ll avoid buying a Burbank home that just isn’t worth the rehab.
Always make sure that you’re checking comps or your preferred area frequently. These numbers will tell you how other similar homes in the area are selling and what sort of features they have. If you can make your home look like those or better, then you should be in a good spot to invest.
Pay attention to properties too. Expensive repairs like roofs and rewiring can tank a budget and throw you off track. Make sure you fully research the Burbank property before you make an offer.
Talk with Other Investors
Investing is not a secret club. While some Burbank investors might not share all secrets, the truth is, they’re fairly open about helping other investors. Rather than treating all investors like the enemy, talk to them and build relationships. You may decide to go into business together someday.
Create Value
The name of the game is buy low, sell high. With house flipping, you buy a property and add value to it in order to sell high.
Make sure you’re adding the right types of value. If your home is in an average neighborhood, expensive upgrades might not be that attractive. A finished basement might do more than a pool.
Have a Good Exit Strategy
Good Burbank flippers are used to rolling with the punches. If they have to sit on a house for a while until it sells, they’re ready. If they decide to rent the property, they already know if the area is zoned for rentals.
Always make sure you have a good backup strategy should things take a turn. It’ll help you stay on your feet.
Work with Trusted People
Most Burbank flippers need a mortgage broker and a real estate agent to help them out as well as a few good contractors. Your broker and agent will help you buy and sell properties quickly, and your contractors will give you fair bids and great work. The better your team is, the more likely you are to be successful.
Flipping real estate gives you the opportunity for limitless wealth and the ability to live on your own terms. As great as the business is there are several areas you need to be proficient at to be successful. Follow these six tips to help guide you as you search for your first deal.