4 Tips For an Investor Looking To Fix and Flip a house for Maximum Profit.

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Fix, and flip is the process where an investor goes around looking for houses that are being auctioned or in bad condition, buys the house at a lower price, fixes the house, and then sells the house at a profit after a few months. You might have watched one of the real estate shows on TV where they make flipping look easy and something that you can just jump into in a day. The good news is that flipping can make you a fortune in a day, but the bad news is that unless you are clinical enough, you risk losing everything in one day.

Here are tips that you can follow to reduce the risk and increase the chances of making a fortune out of the fix and flip investment.

1. Find the right locations.

Many first time Flippers fail because they go for the wrong locations. Which are the wrong locations? A wrong location is a neighborhood that is in decline, there are many other houses for sale in the same neighborhoods, which means more families are moving out, a location with a bad name, or a location with crime. Avoid such locations. You might be able to do magic with the house, make it look like heaven, but you cannot change the neighborhood. Choosing the wrong location means losing all your investment money unless you plan on moving into your investment house.

2. Market value.

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When looking for a house to flip, go for a home where the price is below the market value. When talking about market value, it should be the value of the houses within the neighborhood. This is because, as you move from one neighborhood to another, the value of homes is different, depending on the status and class of the location. Buying a house below the local market value, and then making minor renovations will allow you to make profits when selling the same home. It is crucial to avoid making many renovations, just remake the house to be good enough to make the sale.

3. Network with Realtors.

You are renovating a house with the hope that you will get the right buyer who is willing to buy at market value. There is no better way to find potential buyers than interacting with professional realtors, they know all the buyers within an area, and they can make the deal happen for you in moments. With the right professional realtor, you do not have to wait for months to find the right buyer.

4. Be realistic with the renovations.

Do not go for houses that need expensive makeovers; some homes may require too many renovations, the roof is leaking, the plumbing system needs repair, the foundation is shaky, such a house will involve rebuilding the house from scratch, which means that the value of the home after completion might go above market value. No buyers will be willing to purchase, and losses will be guaranteed.

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