How To Determine Your House Flipping Financing Costs

When we go shopping, we always want to know how much something costs. So I’m not surprised when the biggest question that I receive is “what would be my house flipping financing costs?”

It’s impossible to put an exact figure on the cost of flipping a house. House flipping comes with so many variables so it’s hard to tell how much it would cost. It can cost you anything from hundreds of dollars to thousands of dollars depending on your market, rehab costs and plenty more factors.

The ARV

First, you need to know how much the property will be worth when you are done rehabbing. Once you know the value, all other costs that come with the rehab will start to make sense. This is what is known as the ARV or the After Repair Value.

The best way to get an estimate of the ARV is to compare prices of similar properties in the same area of your target market in the past three months. Get a local realtor to help you determine the ARV faster or alternatively, you can do the research yourself by visiting websites such as Realtor.com.

Keep in mind the following things when determining ARV:

1. Only look at sold houses and not those still on sale
2. Only look for recently sold houses. They should have been sold within the last three to six months.
3. If there are no recent sales then this could be a sign that perhaps properties in the area are not on demand.
4. You can square footage to determine ARV. All you have to do is divide the sales price of property in the area by the square footage of the house. From there, use the square footage in your house and multiply it by the price of per square foot. Although this is effective, it’s not as great as doing a price comparison of the homes in the area.
5. You can adjust the price accordingly depending on the number of bedrooms and bathrooms in the property.
6. Factor in water views and look at other properties that have similar size lots
7. Factor in updated features such as new baths or new roofs, heating systems, kitchens, etc then adjust your price accordingly.

A List Of Things That Determine How Much A House Flip Costs

Rehab Costs

The amount of money you will spend on rehab will depend on Continue reading

Is Foreclosure Flipping Dead?

There has been a lot of speculation about house flipping-- foreclosure flipping, to be specific. Is foreclosure flipping dead?

Well, many people have their reasons as to why the number of foreclosures are on the decline, but the truth is; foreclosure is fading for a number of reasons many people haven't thought of.

Of course, the promising economic data and the raw figures of new foreclosures may have drove foreclosure flipping to its end, but there’s a new player in town that’s killing it even more—the hedge fund. How?

Hedge funds are experimenting with Continue reading

Unbelievable Tips On How To Become A Reliable House Flipper

Becoming a reliable house flipper is all about being honest and distinguishing yourself from unscrupulous people in the business.

Many people have a negative attitude towards fix and flip specialists. The negativity comes from different sources including clients, banks and even government. I had some reservations when I was starting my house flipping website. I handle other aspects of real estate as well but I did not want to present myself as a fix and flip professional. This is because of the bad rapport that is normally associated with this business.

The Downside Of House Flipping

To be completely honest, there are a number of reasons why house flipping has received so much criticism. One of those reasons is the large group of unscrupulous people in this business. These are people who look to make great profits through dishonest methods and by scamming investors. They buy property in bad state and do nothing in terms of repairs. Therefore, they do not improve the value of the property. They then flip it to an unsuspecting buyer.

On the other hand, some house flippers buy Continue reading

How To Flip Houses Like An Expert

What exactly do you need to do while starting a house flipping business? How do you even flip houses like an expert?

Well, if you’re just starting to flip houses, then you have a lot to learn. And part of what you need to learn is how to manage a real estate team. For one, a real estate team will actually condense your learning curve; secondly, it will help you to go through tough times smoothly; and lastly, a team will protect you from all the major pitfalls that a great majority of house flipping investors experience.

Many investors who get into house flipping business are generally misled by a common notion: house flipping is a solitary process. But the truth is; profitable house flipping is totally dependent on the house flipping team you have.

In fact, establishing a good house flipping team comes as the second most important step of starting a successful house flipping business—first is the real estate mind set. That said, here are the most important recruits of a formidable house flipping team:

The Team Members You Need To Flip Houses Like An Expert

Real Estate Attorney

The first recruit on your team should be an experienced real estate lawyer that you implicitly trust. That’s not to say that you need one to help you get out of a jury summon. But somewhat, you need one to keep you on the right side of real estate laws.

Many house flippers make a grievous mistake by Continue reading

Do This And You Will Lose Your House Flipping Profits

Every newbie house flipper has big expectations while getting into the business. But truth be told; some of the strategies they use guarantee they will lose their house flipping profits.

Of course, your gut feeling can lie to you if your experience is not good enough to initiate a sound judgement. And perhaps that’s the main reason why it’s necessary for you to rely on house flipping teams for a smooth walk through over all the puzzling phases of house flipping.

And not only will the team give you a better head start, it will also help you to purchase valuable properties all the time.

A Sure Way Of Losing House Flipping Profits

Flipping Houses With OPE (Other People’s Experience)

The biggest strategy that new investors use to flip houses without incurring losses is what investors call OPE or Other People’s Experience. And usually, such an experience is critical when you’re trying to sell your rehabbed property for the first time.

Even though many professional house flippers prefer Continue reading

How to Maximize Your Profits When Flipping Houses

When starting out, you want to maximize your profits at every chance you get but this may not be possible if you do not utilize the best possible strategies.

Truth be told; the most important thing when flipping houses is knowing how to control your rehab costs. Comparably, it’s just as important, or even more important, than the price you pay in acquiring the property you’re intending to flip.

To begin with, when you’re just starting out, you may be find it necessary to do the bulk of the rehab work yourself—which, of course, is not a bad idea. But once you start doing bigger rehabs, you’ll categorically need to get the services from professionals.

That’s not to say that you’ll be required to Continue reading

Can You Flip Houses Without Money?

If there is a question that I get more often is “How do I flip houses without money?”

TV shows make it look like it’s very easy to flip houses without money but in reality it is not. While it is not easy, you can learn how to do it. I do it all the time. In fact, I hardly ever invest any of my money in most of my house flipping deals.

It is definitely much easier to flip houses when you have your own money especially if you are a beginner. But there are many ways that you can find funding sources to give you money for flipping houses.

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6 Crucial Profit Making Steps For House Flipping Beginners

There’s much to learn for house flipping beginners especially about making a profit in their deals.

Contrary to what many people would have you think, house flipping is not easy. Reality TV shows on house flipping make it seem like it’s easy but I can guarantee you that you cannot learn how to do it in a single day or by reading one blog.

The best way for house flipping beginners to learn the business is by doing it on their own. They will make mistakes along the way but experience is the best teacher.

Thankfully, you can shorten the learning curve by learning these six crucial profit making steps for house flipping beginners.

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To Work Or Not To Work With Wholesalers In House Flips

Many people have had terrible experiences with wholesalers in house flips but are they all the same?

I have to confess that in the many years I have been flipping houses, I have purchased properties from wholesalers. Some of my best deals were sourced from wholesalers. Up to date I still use wholesalers.

When I first started out, I had a hard time differentiating between the good wholesalers and the bad ones. I made my fair share of mistakes and I believed that a majority of the wholesalers were honest people. I wasn’t naïve; I just gave people the benefit of the doubt.

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How To Flip Houses Getting Dirty

I loved playing in the dirt when I was a kid. My mom would swing open the door and I would rush out straight to the sandbox. Since I loved playing in the dirt so much, my favorite cartoon character had to be “Pig-pen” from peanuts.

I still love getting dirty today but I love getting dirty when flipping houses. Getting dirty while making money is much more fun.

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