Flipping houses in the Temecula/Murrieta Valley and across the Inland Empire has been a lucrative venture for investors for many years. Many think it is a quick way to a fast buck. Many have tried and many have failed. Flipping houses is serious business and should not be taken lightly by the novice real estate investor. Before you begin down this path, prepare yourself. Here are five quick tips to help you understand what you’re in for, before you actually start investing your money.
1. You need to know that it’s work.
You need to work with a good local REALTOR® who understands the local market. A local REALTOR® can not only help locate profitable homes through the Multiple Listing Service (MLS) but will be able to lead you to other lesser known resources as well. When it’s time to sell the home your REALTOR® will know the market and help you achieve the greatest price for your fix and flip home for sale.
2. If you are buying low, you’ll need to spend more.
The whole concept of discounted homes for sale is that they need repairs and upgrades. There is no reason for someone to sell a turnkey, state-of-the-art home for a discounted price. It takes time and money to get a home ready to flip and generate the largest possible profit.
Contractors are an important part of your team, so start lining them up now. Yes, you should be able to do some work yourself, but understand that time is money – how much time do you have to invest in the project? The quicker it sells, the quicker you get paid and the money you have tied up is free again.
3. The kitchen makes the sale.
The one room that swings more sales is the kitchen. Here in the Temecula/Murrieta Valley, kitchens should have recessed lighting, solid surface countertops and high-end matching appliances if you want to capture the ‘wow’ factor. Upgraded cabinets, a full backsplash, under-the-counter lights and tile/hardwood floors all do their part in closing a deal.
4. Garage doors are part of curb appeal.
There’s nothing worse than selling an upgraded home, beautifully landscaped with a nasty old wooden garage door (just as bad is a dented, metal roll-up). People do judge books by their covers and houses by their curb appeal. The garage door is the first thing anyone sees, so make sure it’s memorable. First impressions count.
5. In landscaping, less is more.
When a potential buyer is considering purchasing a new Temecula/Murrieta home, they want it to look nice. What they don’t want is a lot of high-maintenance landscape, no matter how stunning. Remember your audience, most home buyers in our Valley are working families who don’t have all week to tend to the grounds nor do they want to spend all weekend doing it either. Keep your landscape clean and simple and don’t forget the back and side yards, too.
If you are considering getting into the real estate investment business, either as a part-time venture or your life’s work, know what you are getting yourself into.
