How House Flippers Prepare To Sell Properties
House flippers have very time-oriented careers. Once a property is purchased, it is time to start renovations, and plotting time lines for individual projects to keep everything on schedule in order to sell the house as quickly as possible in a given area. However, just walking blindly into a project without figuring out what happens between purchasing and selling can leave flippers with a money pit on their hands. For these reasons, we have put together an overview of some of the key things house flippers need to do when preparing properties for sale.
Figure Out A Budget
House flippers need to have an overall budget, which is usually broken down into two small figures. The first is the price of purchasing, and the second the cost of renovation. It is important that house flippers do not go over those budgets in order to maximize profitability. Keep in mind, buying everything “on the cheap” also does not pay off. Potential buyers can tell poor quality in aesthetics, and skimping on the construction material only leads to more problems down the road.
House Flippers Should Get An Estimate
When all of the work is done, get the house appraised to see how much the value has improved. House flippers should compare this estimate to other homes in the immediate neighborhood in order to arrive at a reasonable (and profitable) price. Simply picking a number out of the air will not sell the house.
Filling In The Gaps In Financing
House flippers often run into immediate costs when undertaking a project. Whether it is getting permits, listing costs, renting furniture for staging, or anything else. In these cases, house flippers usually turn to bridge loans or hard money loans. Bridge loans are designed to fill in the gaps in funding which are not covered by larger financing (which is usually used for the major renovations and construction). Bridge loans are usually figured into the overall cost of the property, and flippers repay the financing when the home sells, or out of any larger loans used in the rehab phase.
If you are flipping houses and need short-term financing, or larger funding for big projects, call Biz Com Loans at 1-844-85-LOANS (1-844-855-6267). We specialize in providing financing solution to house flippers ranging from conventional loans to bridge loans, and much more.