House Flipping Tips & Techniques
Having been in the real estate business for quite a while selling existing and new homes in Columbus GA, Phenix City AL, Harris County GA, Ft. Mitchell AL, I have experience in house flipping.
With the advent of all the TV shows concerning real estate, folks are especially interested in “Filliping Properties”. They make it look “too easy”. Here are my personal tips before you take the plunge.
Bullet points for your consideration:
- Find a property in a good part of town. Ask yourself, would you live there?
- Know the neighborhood comps (recent sale prices during the last 12 months). Unless you are a real estate agent you may not readily be able to gather this data. Some realtors special in investment properties and can be on the lookout for your “fixer-upper”. They can help you not pay too much.
- I was on the “selling side” last week for a real estate sale from a long term friend. The house was in an older part of Columbus GA with 2400-2600- sq ft homes. They had several investors wanting to steal the property for $75,000-$80,000 range. Listed for $140,000, lowered price to $135,000 after 30 days. Finally got an offer of $105,000 which I countered a couple of times and closed it last Thursday @ $112,500. So my seller got $32,500 over the best investor offer before they hired me.
- From the buyer side, the investor in Columbus GA got a reasonable deal. He had a good idea of expected costs as he brought in his regular contractors for each trade, (roof, plumbing, air conditioner, floor covering, electrical, etc.).He paid cash by the way, so he had no interest charges during the restoration phase. I figure he would need to invest $50,000 and now have $162,500 in the property. I think he could then immediately resale for $200,000, making a handsome profit of $38,500 within 60-90 days.
- Bottom line is you need to make your money “up-front”; if you pay too much in the beginning, be prepared to rent the property or live in it yourself!
Check out my other real estate articles on my website. If you, your friends or family ever need help in the Columbus GA or Phenix City AL area, please pass along my contact information or call Paul Tommey at 762 822-6411.