7 Essential House Flipping Checklist For Investors
You can make a killing out of fixing and flipping houses. It’s not rocket science, but it requires you to be meticulous about every detail. Apart from solid financial know-how, you must also undertake extensive consultation and have the right documentation to succeed.
Most importantly, you must select the ideal properties that won’t require intensive repairs yet sell fast for quick and more significant returns. Read on for a complete house flipping checklist to ensure your first or next property flips are smooth and profitable.
1. Go for Worthwhile Deals
You need a smart strategy to find practical deals. The right system will make it easy to find ideal properties worthy of investment. Stick to your plan and analyze any prospective homes you can fix and flip.
After finding prospective properties, you must work with different lenders to support your investment financially. To submit offers, you’ll need a pre-approval letter, which you have to get from your preferred first-choice lender.
2. Submit Offers
Offer acceptance does not come on a silver platter. You have to make and submit as many as twenty offers on different real estate investments to increase the likelihood of acceptance. While doing that, take time to evaluate the potential profit from the expenses and consult with contractors on the cost of renovations to come up with an acceptable ceiling price before making your offer.
3. Conclude the Financing Process
Unless you buy in cash, you need some form of financing deal for your new property. Hard money loans are often the preferred option for flips. If your deal goes through, you have to finalize everything else. Most experts advise you to work with a loan lender that meets your needs. You’ll have to give the lender all the necessary documentation, like the pre-approval letter, to complete the financing process.
4. Don’t Forget About Property Inspection
The purpose of the inspection is to ensure that everything in the property and all the utilities is in perfect working order. Ideally, the inspection process provides a report that indicates where there’s damage and where you need to repair it.
5. Buy the Settlement
You can get the closing date confirmed with the seller and the hard loan lender. Find out from the lender if there is extra paperwork you must accomplish before choosing the settlement day. It’s advisable to have the HUD-1 settlement statement before then.
The statement provides a detailed breakdown of every transaction between the seller and the buyer. You have to review it carefully and iron out any discrepancies. When the closing date arrives, ensure you have all the necessary documentation. You can consult with your title company on this step.
6. Renovate
To renovate effectively, you need to be at the site of work regularly to understand what needs fixing. You need to draw plans for the renovations. On top of that, involving your realtor in house repairs is the way to go. In most cases, your realtor can provide valuable input and tips on the kind of finish that fetches a reasonable price in the market.
7. Property Listing
Before listing the property, hire a professional to clean your property thoroughly. When they finish this step, take the time to sign a listing agreement the realtor provided. Afterward, you’ll need to photograph the house and offer a reasonable price for a seamless listing experience. Finally, keep in touch with the realtor for feedback and other marketing tactics.
Try House Flipping for Profitable Returns
Your house-flipping process should be easy with this checklist. With everything on this list, you can be sure about renovating a prospective property in time and selling it at a profit. Get in touch with us to find the best investment opportunities today!