5 Ways People Who Successfully Fix and Flip Properties Think Differently
Fixing and flipping properties, despite the simplistic and descriptive name, isn’t always an easy venture. Those who are good at it spend years in the pursuit of success, learning the trade inside and out, backward and forward. And there’s more to success than practice; those who can master the art and turn a profit need commitment, dedication, and –most importantly–a unique mindset.
House flipping is a major investment that can be a great success. Here’s what experienced and successful house flippers do that the inexperienced investor might not.
They Plan Ahead
Flipping a house takes more than an inquisitive mind and an eager spirit. More specifically, it involves extreme planning. The initial costs are very steep, and without a proper plan, it’s easy to find yourself with a money pit that can’t be flipped for much at all.
Planning as a flipper means more than just seeing the potential in a house and being prepared to do the dirty work. Planning means months or even years of preparation, laying the groundwork for what you hope to accomplish. How you plan will often be up to you, from creating a financial safety net to working one on one with other flippers to learn industry secrets. No matter how you choose to proceed, however, the truth still stands: to succeed, you need a planner’s perspective.
They Don’t Settle
When it comes to big investments, moves must be made deliberately. This is true for almost any situation, from buying stocks to some precious metals, but buying a house requires something special. To flip a house, you need the right property that has the potential necessary to garner the best results.
When house flippers shop for potential investments, they’re looking for the little things that make a property stand out. They’re looking for the details that can be played up and the elements that can be fixed or improved quickly and easily. What they aren’t looking for is a fast purchase in a variable market.
As experienced investors know, settling on a property can often lead to an unpleasant outcome. No matter how anxious you are to get started, patience and precision are required for a great result. And as all house flippers know, the only gut you can trust is your own. Instead of acting with haste, wait for a sure thing before moving forward.
They Know How to Research
What’s the market like in your area? What are the most desirable home improvements for new buyers? What improvements require the smallest investments with the largest gains? How quickly can you flip a property? These are all questions a successful property flipper should be able to answer.
Don’t know what to say? It’s time to learn. Without a full understanding of the market, the best ways to improve a property, how to choose contractors, and how to make timely improvements for a speedy flip, you won’t be as successful as you could be.
A great flipper knows how important it is to research opportunities, the market, and even with which reputable people to work. With proper exploration and preparation, even what appears to be a failed investment can turn into a positive with adequate preparation. From dealing with unreliable associates to finding big problems unseen during an inspection, the right research can put you in the best possible position to remedy issues and handle even negative situations with ease.
They Can Fight
Fight and tenacity are valuable skills in a house flipper. To get the best deals, negotiate the lowest prices, and persuade everyone from inspectors to contractors to provide fair, fast service, you need to be able to stand up for yourself. This doesn’t mean actual, physical fighting, but rather an ability to withstand stressors to be the last man – or woman – standing.
Unfortunately, even the best laid fix and flip plans can go awry. When challenges arise, however, a great property investor fights back instead of giving up. From trying to persuade a seller to lower an asking price to convincing an unreliable contractor that you won’t pay their exorbitant rates, a backbone is a necessary part of flipping for a profit.
It’s important to note that if the seller doesn’t sell the home at a price that works for you, learn to walk away. Look for another home that meets your exact criteria.
They Spend Wisely
As anyone who has purchased a house knows, the process is both time consuming and costly. Without realizing it, purchasing a property, making renovations, staging the interior, and making landscaping upgrades can end up exceeding even a well-prepared budget.
Understanding the line between appropriate spending and excessive spending is often a narrow balance, especially when it comes to budgeting and compromising. Sometimes, a splurge can work out, while other times, it can end up costing thousands of dollars. Taking the time to determine the difference, and how to effectively keep prices down while doing so, can often be the mindset you need to master. When you want to ensure the biggest profit possible, you need to know when to spend, and how to spend, in order to develop a truly winning approach to a house fix and flip.
Buying an investment property isn’t the same as buying a home for yourself and your family; learning how to master flipping takes a change in perspective that can’t happen overnight. The best house flippers are dedicated to a unique mindset that is custom tailored around success, work hard to understand the market, fight for ideal outcomes, and spend money wisely. A flipper’s way of thinking is a central part of a truly great investment, no matter what you hope to gain. Thinking differently on your next flip has the potential to lead to profits.
Scott Clift is a licensed real estate broker with Westpark Equity Group and the private lending division of Westpark Loans. He has been in the real estate industry since 1994. His team of seasoned professionals specialize in providing real estate loans for investors and other self-employed individuals. When you are ready to invest in real estate, call Westpark Loans to secure your financing at (844) 574-LOAN or by visiting westparkloans.com.