Flipping Properties Quickly
Fix And Flip Course
Flipping properties quickly means more profit. There are two
reasons for this. First, you get to flip more properties each
year if you finish them faster. After all, even if you hire out
every bit of the work, you can only concentrate on so many properties
at a time. Finish one sooner, and your mind and efforts (and
money) are freed up sooner for the next one.
The second reason that flipping properties quickly is important
is that it costs money to own real estate. How much may vary
depending on the size of the project and how much cash you have
to invest, but in any case there are always holding costs. These
include interest on loans, property taxes, insurance, utilities,
and even lawn care. Every extra day costs something and that
means less profit.
You should know what those holding costs are. It helps with
decision-making. For example, suppose you need a driveway and
will then be ready to sell. One company can start tomorrow. The
second bid is $400 less, but that company can't do it for two
weeks. Who should you hire? If you know your holding costs are
$450 per week, the decision is easy. The first company would
cost you $900 more in holding costs, so it's better to pay $400
more to get the job done now.
You need to know what your holding costs are. You need to
make your repairs and improvements fast. Then you need to have
the house sold fast. With that in mind, here are some tips for
flipping properties quickly.
Fast Flipping
- Don't wait until closing to start the project. Have contractors
lined up, get quotes, look at appliances, carpets and other materials.
Once you have a firm closing date, have any demolition and cleaning
people ready to be there the day of closing.
- Make a list of everyone you will be calling or might be
calling, and keep it with you. This should include other contractors
in case the chosen ones don't show.
- Start the most time-consuming parts of the project as soon
as possible. Some things like planting flowers or replacing a
mailbox, can be done at almost any time, and don't take long.
Others, like custom-made cupboards, might take weeks to have
done, so they need to be started soon.
- Identify connected projects that most limit the speed of
the whole flip. For example, to have bathroom fixtures put in
you need walls painted, which means the drywall has to be up,
but to have drywall up you need the plumbing done, which means
you need the old walls torn out. These five steps, from tearing
out walls to plumbing, dry walling, painting and then putting
up the fixtures might take longer than any other series of connected
projects, so start the first step as soon as possible and schedule
the other steps.
- To sell fast, have your marketing plan in place before the
property is ready. If you are using a real estate agent, as soon
as you can see when you'll be done, have the listing out there
the day before. If you are selling on your own, have you running
the day you finish. Buy signs before hand, talk to possible buyers
or agents who have possible buyers, and have sales flyers ready.
-
You can flip a house more quickly if you price it slightly under
the market - and let everyone know. Asking $5,000 less may not
cost you anything, by the way. It can mean saving a couple months
of holding costs. It can also mean rolling that money into the
next project sooner, which could mean flipping five properties
in a year instead of four - and this more than makes up for a
little less profit on some of them.
Steve
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Fix And Flip
Real Estate Investing Course.
Tips For Flipping A House | Flipping
Properties Quickly |
