While the desire to become a house flipper may help fuel your determination and willpower, it’s not the only thing you’ll need in the real estate industry!
Professional house flippers have a routine in which they operate to maintain their business, reputation, and finances. Let’s discuss the top five things you need to succeed in house flipping to ensure you’re on your way to success.
Good Credit
Having good credit is critical for business professionals and consumers alike. Although certain hard money lenders don’t require a credit check, most lenders do, which is why having good credit is essential in house flipping.
First, analyze your current credit score to determine how to improve and build a positive score. The higher your score, the lower the interest rate you might receive on specific loans.
Try increasing your score by partnering with credit-building services, paying bills on time, paying down your debt, and more.
Team of Experts
While it’s possible to flip houses on your own, it can be challenging, which is why many successful house flippers work with their team of experts for every project.
Check your network (or start networking at local events) for professionals you might consider working with. A few people you might need in your corner include:
- Lawyer
- Real estate agent
- Home inspector
A lawyer can help you navigate specific house flipping laws, while a real estate agent can give you more information on the renovation area. A home inspector can also check the home for safety code violations.
Professional Subcontractors
Your team of experts should also include professional contractors. While you might know how to complete specific projects, it’s always a good idea to confirm with contractors who specialize in specific areas, such as:
- Windows
- Sewer
- Foundation
- Electrical
You’ll want to partner with a contractor that focuses on each area to help you save money on specific projects, as they can work quicker and more efficiently than general contractors.
Time and Patience
House flipping doesn’t happen overnight. Many behind-the-scenes things need to happen for a house flip to be successful.
The real estate industry operates on restricted timelines, which means if you want to succeed as a house flipper, you’ll need to have plenty of time and patience. These traits will help you become more efficient in your processes because you’ll know when to buy and sell.
Researching, buying, renovating, and selling takes a lot of time, so you’ll need to be patient in the process to ensure you repair the property safely.
Financial Knowledge
Of course, with financial knowledge comes a thriving house flipper. For example, to get the best loan possible when buying a property, you’ll need to know the difference between private money lending and traditional bank loans.
You’ll also want to know the tiny details of investing that not many know about. For example, you may not know what the 70 percent rule is and how it can provide you with the information you need to buy a property.
The top five things you need to succeed in house flipping will help you establish your brand and yourself as a house flipper!