Are you looking to invest in an asset that can generate quick profits? Then you should consider the house flipping alternative. It is a very popular trend in British Columbia that consists of buying a property to remodel it and then selling it.

Although it seems easy to execute, it is an investment alternative that requires taking into account some aspects to take advantage of its maximum potential.

In this article, Yarmoloy Group experts tell you what are the keys to obtaining greater profitability in the shortest possible time with the house flipping strategy.

What is house flipping?

House Flipping is a real estate strategy in which a property is acquired that at first glance might not seem to have much value. It is being remodeled and quickly sold for a significant financial profit.

House flipping is based on the purchase of a home, used or old, that needs to be remodeled and then sell it at a higher price

House flipping is a very lucrative business as long as the strategy meets the following conditions:

That the property (used or old) is purchased at a price below the market average.

That the sale price is higher than the cost of the reforms or improvements made to the property.

Why has house flipping become so famous?

Although the formula of buying properties to obtain an economic benefit has always existed, house flipping is today the most popular real estate investment alternative.

Featured Phrase: House flipping guarantees a faster profit return than other investment alternatives on the market.

The rise of house flipping is due to the various advantages it offers investors. Among them we can mention the following:

It has a very fast return on investment since the average time to sell a house is 6 months.

It is more profitable compared to other investment models.

It allows for generating extra income since it is an activity that can be done while maintaining the main occupation.

It offers the opportunity to access a better category property. Many people buy a house, remodel it while they live in it, and then sell it for a higher price that allows them to access a better house.

It allows learning about various areas involved in the process: hiring staff, construction, remodeling, interior design, and financing. Also, it helps improve negotiation skills.

How does house flipping work?

The purchase is the most important step in your investment process. Think that the more expensive you buy the house, the more money you will have to sell it to guarantee a good profit margin.

Therefore, your objective should be to get a home that needs remodeling, since a property that requires reforms can be negotiated at a lower price.

The key to the house flipping strategy is not to find the cheapest house on the market, but rather one that is competitively priced, needs updating, and can be sold after fixing it up.

The key to success with house flipping is low-cost renovations that really boost property value . In this way, you make the property more attractive to potential buyers who will be willing to pay the amount you establish.

Everything you need to keep in mind for House Flipping

House Flipping is a business, so you must take into account the aspects that will ensure a positive result. Here we list the most important:

The Ubication. Look for a property in a city that attracts people for its potential. That is, with a solid economy, that offers job opportunities or that is touristic. It is also very important that the property is located in a safe area.

The state of the property. Although you will have to remodel, the idea is not to have to build the house again. Look for solid buildings with good structures. Research what you are buying.

Nearby schools. Properties that are close to educational centers are sold faster.

Closeness. If possible, look for a property that is close to where you live, since you will have to spend a lot of time working on it.

The kitchen.  Many experts recommend remodeling it, since it is one of the most important spaces in the house and where people spend more time.

Do the math: Calculate how much you can spend on the house, its subsequent remodeling and the risk you are willing to take. Consider the financing, taxes , services and maintenance of the home for a year.

Know your buyer: Think about who could buy the house and remodel it according to the profile or tastes of potential buyers. Creating open, aesthetically appealing spaces make homes easier to negotiate

The value: Make sure the price you set for the sale is below market value to make it more attractive to potential buyers.

Copy link
Powered by Social Snap