With housing prices reaching for the stars, it’s an increasingly difficult market for house flippers – especially in southern California’s hot real estate market but it can be done! Here’s my advice if you want to flip a house:
- Pay attention to the market. Try to buy low and don’t buy at the wrong time.
- Learn the industry. Realize what it’s going to take to fix up a property.
- Look at the demographics in the area you are flipping. This is especially important in Rancho Santa Fe, Fairbanks Ranch, Del Mar, La Jolla, Solana Beach, Encinitas and Carlsbad where prices keep climbing. Who knows where you’ll find that diamond in the rough.
- It’s more important to look at the price you buy, rather than the price you sell. Look at what your profit margin will be.
- You have to have the mindset of an investor because it’s a gamble.
- If you remodel, have a good idea of what it usually takes to remodel a home of the size given.
- Be a general contractor or architect first. Gain experience in the field of remodel, because flipping houses usually involve improving the condition of the house.
- Look at your finances. Maintain a good credit score, and consider loans. Keep in mind that a loan then becomes an expense you have to add to the price you want to sell at, so that you can pay that back and still receive a profit that is worth the money spent remodeling, owning for the time it was off the market, and planning for all other expenses.
MMD Construction is happy to review a potential project with you; let us know how we can help.