Homes are such an essential need during this pandemic. But because of the pandemic, many are struggling to purchase the home of their dreams. To offset this, many are trying their luck in the field of house flipping.
House flippers are driving the current market upside down. They also supply some of the needed homes and variety in the industry. But what is house flipping exactly, and how can you profit from it?
What Is House Flipping?
House flipping is the process of purchasing an old, cheap, and dilapidated home. You then renovate it and sell it for a profit. It’s a simple idea, but one that requires a lot of thought placed into it. Nevertheless, it has become such a recent phenomenon because of various reasons.
The first reason is that many celebrities are doing it right. For example, Ellen Degeneres is one of the leading celebrities doing house flipping. Quite recently, she sold a home in Beverly Hills. The amount is estimated to be around $47 million. This business venture has such good returns that Ellen continues to sell flipped properties up to this day. She has sold over 20 flipped properties to fellow celebrities and medium-income Americans alike.
Another reason why people house flip is because homes are costly right now. No one knew that the combination of the housing shortage and the pandemic would increase home prices by more than 15%. That’s the highest increase the market has received since the 2008 financial crisis. It’s a staggering blow to the industry, and many are looking for valid options to get the home they want without paying too much money. Thankfully, many are doing house flipping, helping the industry recover.
The last reason you want to join the house-flipping craze is that it’s a profitable venture.
Why Is It Profitable Right Now?
So many people looking for an alternative to the expensive homes in the market are going to house flippers as their solution. With that in mind, you’ll never run low on clients. Furthermore, you can charge them a bit more before. People are desperate enough to purchase a flipped home for about $250,000. That’s higher than the previous averages in the last decade or so. You can even push the prices even higher if you have a high-valued client.
Moreover, the industry is so volatile that many old homes can cost as little as $100,000, with some costing less than that. It’s also a venture you can choose to explore overseas. For example, in the sleeping cities of Italy, dilapidated homes can cost as little as $9,000. This is an international venture but one you should start in the US.
Essentials of House Flipping
There are various essentials you need to know before starting this business venture. The first of which is the state of the current market.
Cheap homes aren’t common nowadays, but old and dilapidated ones can be found in almost every city. Start local and look up a few listings from where you live to start. But don’t look for ones that are way too old for your first flip. If there aren’t any good listings right now, it’s important to wait. With this in mind, don’t quit your day job just yet. You won’t make a good profit right from the beginning, so patience will be a virtue for you.
Another good seller is the location. Properties near commercial areas and school districts are an amazing buy and will undoubtedly drive appeal and property value. Some people like to purchase a property in excellent and quiet neighborhoods, so make sure to look for that. However, when all else fails, you’re going to have to rely on your skills or a contractor.
Your skills can determine whether you can flip a home or not, so it’s good to invest in an interior designing course. There are many affordable online courses right now, and each course will teach you the fundamentals of house flipping. However, your skills can only drive you so far. Once you start flipping multiple homes, you might need an extra helping hand or two.
This is where you hire independent contractors to implement your vision. You can employ some for complete flips, but you can employ some for complicated tasks like exterior home painting. You must hire people that have some experience beforehand because it’ll make the house flipping process a lot faster and more efficient.
Contractors can also do your house flipping job while you’re away. This will make a difference when you plan to do a significant house flip in another state.
House flipping is a profitable venture and one that you can start anytime this year. Many realtors and celebrities built their real estate empires by doing this. It’s time you consider and explore this option.