Fixing and flipping Snohomish County homes has changed only due to low inventory levels but the principals of fixing and flipping strategy has remained the same. What is fixing and flipping? It’s the real estate strategy of purchasing a home at a discounted rated, typically due to the property’s poor condition, fixing and repairing the home to bring it up to fanciable standards, and then reselling the property for a profit. Investors, general contractors, and restoration businesses see the area of fixing and flipping quiet profitable as the cash investment can yield higher short term returns when compared to other investment vehicles.
How to Fix & Flip Houses in Snohomish County
1. Create a budget model. Set up an Excel spreadsheet that calculates the total costs of the properties purchase and reselling, cost of all materials used in the repairs, labor rates even if you’re doing your own work (many more figures can be placed into the spreadsheet). A budget model will allow investors to replicate the process for additional properties, reducing risk and surprises, and to easily share the costs with other investors who maybe interested in the fixing and flipping strategy.
2. Determine the purchasing funds. Are the purchasing funds going to be Greenbacks, financing, stem from private sources, a portfolio loan(s)? No matter where the funds come from, those funds have to be ready at a moments notice – not a after thought. Having accessible funds will allow you to act on those great deals because great deals is where the money will be made.
3. Submit muliple offers. Don’t be afraid to submit offers on various properties because someone will always be willing to offer a bit more or the seller decides to proceed with another offer. You have a budget to adhere to and if offering more on a property exceeds the property purchase allowance then that decision needs to be heavily scrutinized. Keep fishing as that property will come up and be purchased at the desired price. Look at foreclosures and HUD homes because the condition of these homes can put them in the right price point – the margins on resales can be challenging.
4. Have a dedicated team. Contractors, real estate brokers, title and escrow companies will all help to get the properties purchased, repaired, and back on market in a timely fashion. A lot of money can be lost due to delayed repairs, rising product costs, and poor workmanship. Dependability and accountability can save time, money, and heartache.
5. Stick to the project schedule. Sticking to a schedule keeps every aspect of the fixing and flipping project predictable and manageable. Because a home that sits off market due scheduling delays is not making money. From purchasing, progressing through the renovation phase, and onto obtaining a buyer is the goal. Stay focused and stick to that schedule.
Fixing and flipping homes is a big undertaking and a serious commitment. Not for the faint of heart. Yet, on the flip side, pun intended, these type of real estate transactions can be fun, adventurous, and highly lucrative. Get that home back on market and start looking for that next project.