So you're thinking about flipping an investment property for (presumably) a profit. A few rules: buy cheap, budget, research and know the rules and laws. What's your margin? Where are you getting the money? Depending on your type of funding their may be rules/laws on how much profit you can make and even if you must own/occupy for a period of time.
Throw caution to the wind, head to the auction sites and let it rip.....NO! Don't do that! 1st research the area and get to know the market intimately. After all you're about to spend the next 4-6 weeks plus working on this investment. And what about marketing, let me provide a Realtor's perspective. So lets HGTV it! The morning of your OPEN HOUSE, you plop your slick sign out front and 20 able and willing buyers all armed with clever insight of how well you’ve done, march through your open house. and within 24 hours you're in a bidding war. Yeah, that's how it works...(sigh)
Plan your open house, plan on paying at least a buyer's agent a commission and hopefully you've invested in your property having Realtor that will market your property for you (there are so many facts to support this, and that will be another blog) it's our job, it's what we do and hopefully do it well. The truth is when we are driving clients around we have strategically planned our day around 5 or so target properties that fit our client's needs. Believe it or not we don’t just drive around hoping your beautiful project is ready just precisely the day we have buyers that want to jump at the opportunity.
Okay rant over.
Start small, buy a cheap home that you can put inexpensive finishing and make a modest profit. You need to develop relationships with your sub-contractors, you need to source materials at the best margin you can, you need to build in at least a 10% contingency budget, you may need to pay the mortgage for several months if your investment sits, or repairs take longer than anticipated. Buying and selling real estate is a business in itself, treat it as such. Get to know the area's Realtors, you will be working with them on one side of the deal or the other. And a good relationship can save you thousands on buying and selling, they may have ideas of how to purchase and list properties that help you both.
Contact us today! Jared and Leah SouthernCharmRealtyCharleston.com