While anybody can virtually flip a house, not all real estate investors are maximizing their profits, partly because they are doing it wrong.
Rehabbing a house might be easy for some but there are still guidelines on how to achieve the ultimate goal in real estate investing - maximizing profits.
One of the most important things to consider in pulling off a successful fix and flip project is to have a clear-cut plan.
Rehabbing a home does not simply mean buying a property, remodeling it, adding a profit margin into the after repair value, and then putting it on the market.
Don't just buy a property, renovate it, add $15,000 onto the costs, and then try to sell the house.
You must set a limit on how much you are willing to spend on a property.
Estimate all expenses, including all fees, commissions, and taxes, even before you start to fix and flip a home.
Another important consideration in rehabbing a home is to avoid overdoing the repairs.
Remember that you are renovating the property for profit.
Don't install a beautiful yet expensive set of tiles in the kitchen just because you like the tile's color or texture.
You must spend as little as possible when doing the repairs, but not to the point that you're jeopardizing the house's overall quality.
Always remember that home buyers want nicely done houses, but it doesn't mean that you have to build them a mansion.
Successful real estate investors always leave room for negotiations in their listing prices.
This means you should set a price range for the property you're selling.
Sell your property the moment a fair offer comes along.
Be realistic about your selling price and avoid forcing potential buyers into increasing their offers.
You could end up with an unsold property for months if you wait for that highest offer to come.
Selling your property immediately would also allow you to move on to the next project and thus earn more profits.