Flipping real estate has become uber popular because of the HGTV shows and the allure of making fast money. The reality is that flipping a house successfully requires many skills and a lot of hard work. If you’re a homeowner interested in trying to renovate their house for a larger profit or an aspiring investor, it is important to know a few tips and tricks before getting started. In our latest post, we provide some tips for quickly flipping real estate in the New Jersey area.
As an aspiring New Jersey investor, it is important to understand that every day the house remains off the market, the more of your profit goes out the window. The carrying costs of owning a home can eat away at any potential profits much faster than people realize. This is especially true if you are utilizing funds from hard money resources or private lenders. Monthly utility costs, homeowner’s insurance, property tax, maintenance, and the mortgage payment are some of the costs that will add up quickly over time. Whether you are flipping a property, or you need to sell a house you have owned awhile, selling quickly will help you to keep more money in your pocket. Below I have provided some information on how to sell your property quickly in the New Jersey area.
Avoid Getting in too Deep
The key as a homeowner is not to open Pandora’s box unless you have the available budget to do so. In other words, do not take on more renovations than are necessary. For an aspiring investor, my advice is a bit different because as an up and coming company that wants do renovations for a living, you should feel a responsibility of providing a quality product to the next homeowner. At the end of the day, your reputation is on the line. When purchasing a potential investment, you should make sure your budget is large enough to handle everything that needs to get done and more. Once you begin opening walls, you will undoubtedly uncover many more items that will need to be fixed. You want to make sure you budget for these unknowns from the start, ideally before purchasing the home. That is why for first time flippers, it is not wise not to take on a first project that needs a large renovation. As for homeowners, avoid re configuring your home thinking you will make a much larger profit. You won’t see all your investment back on the resale so keep the renovations to a minimum.
Build a Strong Team
Before embarking on any renovation project, you will want to have your team of contractors ready to go. This means having already performed all the necessary due diligence on your potential contractors, having them lined up for the work, and proposed timelines and budget all figured out. As you invest in more and more properties, you will begin to expand your team of professionals to include title professionals, designers, agents, wholesalers, legal professionals, an accountant, and other investors. Having talented and smart people on your team will help you execute your deals faster and with more precision. Join local investment groups to network with other like-minded professionals. Many of the best deals are done through networking.
Know When to Outsource
Many people want to save as much as possible and then try to do it all the work themselves. While you might have a strong construction background, you should also not be afraid to call in the pros when you need them. If you are redoing a bathroom, for example, consult a plumber to help, while you handle the framing, etc. Only use licensed and insured contractors on any project you are completing. By sacrificing on quality, you are setting yourself up for problem down the road.
Avoiding Falling in Love
Selling real estate in New Jersey should be thought of as a business endeavor, without emotional attachment. These are not properties you are keeping for the long term, so don’t fall in love with the house. This advice may be harder to take to heart for a homeowner that has raised their family in the house, but the same holds true. When selling a home, you are selling a product. Therefore, the less emotional attachment to the house the better you will be able to make rational decisions. There are many upgrades that you can do to increase the value, but don’t spend an unreasonable amount of money picking out fixtures, countertops, or other cosmetic items. By incorporating your personal taste too much, you could may even turn some buyers off to the house. Stick with neutral tones, simple, yet classy fixtures, and keep your costs low wherever possible. However, don’t go too cheap either, as you don’t want to sacrifice the ability to resell the house quickly by turning away buyers who notice your shotty work and finishes.
Know How To Sell The Neighborhood
If you live in the area, you will already know a good deal about the neighborhood and local market. However, if you aren’t exactly a local, learning about the neighborhood perks will help you in selling the house. Hype up popular restaurants in the area, the good schools, the ease of transportation, and future growth plans. Learning about these sorts of things will help you persuade a buyer to buy, especially if they are on the fence with pulling the trigger to move forward.
Expect the Unexpected
When doing repair work to a house, you will likely discover additional things you want to fix. Set aside some of your budget for the surprise costs that will inevitably show up. You should also have a backup plan in place in case the house doesn’t sell as quickly as you need it to. For example, getting a short-term renter in there to reduce your ownership costs until the market picks back up.
Whether you are looking to buy or sell an investment property in the New Jersey area, Halo Homebuyers L.L.C. can help by either purchasing an unwanted property or selling you a house at a price that makes sense. Just like you, we are investors who only deal with the best properties and deals. We would love to work together!
Contact us today to learn more about quickly flipping real estate in the New Jersey area! (908) 547-0404