The idea is not to catch a shooting star in a rapidly appreciating market. Rather, the real plan lies in finding undervalued properties, rehab them, present them in an attractive manner, and sell them for a reasonable profit. Home flipping is an art. It's a business, which reveals your mind - the smartest wins - and your inner world - charisma and the ability to present your property in an attractive manner. If you think you cover these two characteristics, follow this article to the end to see what else is required from the successful house flipper.
1) A varied skill set. During the project of real estate flipping, you'll wear a number of masks, or so called 'hats'. Their role's to present you as a project manager, accountant, designer, problem solver, contractor, real estate professional, PR consultant, marketer, etc. While wearing all these 'hats' you have a better chance of success.
2) Ability to approach the flip strategically and with integrity. Smart is always the shortest and most effective way. And smart flippers know perfectly well what the value of approaching a project in a strategic manner truly means. If you're a calculated flipper, you have a plan in your head, you keep a tight reign on your budget, you only do the necessary fixes, immerse yourself in the local real estate market, have a clue in how to market and position your flip and you're constantly aware of how time can impact your project.
3) Time consciousness. They say "time is money", and they say it for house flipping industry. Not only do cosmetic updates or structural changes take time and resources, but every month, passing another mortgage payment is handed over to the bank.
4) Detailed vision. Always keep in head, that you're preparing to sell a project that's move-in ready. That requires you to stage your flip. Presenting your product means seeing every scratch, hiding it and creating a warm and welcoming appeal. Subtle sounds, smells and sights make people feel comfortable and your house, and further buying process, cozy. Only in case you don't forget to put down the toilet seat, of course.
5) A 'non-personal' approach to everyone and everything. Your potential buyer is your greatest aim as a house flipper. And you must be in tune with him. That means knowing the character, so you use the exact materials and design required. You also decide whether to position your project as entry-level or more high-end. You should interpret your target market in the right way so as not to over or under-do a renovation. Although it is tempting to go ‘all out’ when updating a flip, at the end of the day, flipping is about only doing what’s needed to get a place structurally and visually ready to sell. Don't let your project be personal, unless you want to lose extra money.
6) A perfect handle on the budget. A successful house flipping project has to be entered into with a budget, the realistic idea of the forecasted costs. This will help your flip not to run over your budget and negate the whole idea of house flipping for you and, in the first place, the profit. The careful research, related to costs involved in flipping such as mortgage payments, mortgage insurance, cost of materials and labor, whether labor is readily available and other researches prior to flipping turn you into a savvy house flipper.
7) The first thought is of the target market. A good house flipper is a person who has a firm handle on the market fluctuations with the local real estate area. This knowledge helps him to spot a deal. Moreover, there's no news for knowledgeable flippers that design plays sometimes the biggest role in the final product. And the decision must be smart: simplicity. Focus more on basic things, not on your personal preferences. Trying to appeal to the masses within your target market means you shouldn't go with materials or color schemes that most people won't relate with. Tasteful yet neutral design will create a comfortable image for your potential buyer.