Flipping homes can be confusing when you are just starting out. Especially if you are new to the real estate industry. For you newcomers, here are some quick start steps:
1. Prepare yourself mentally. Determine your motivation for wanting to flip homes. Ideally, it should be emotional. Make it personal and be specific. This motivation is what will push you through the rough patches and will help you overcome your fears. Have faith that if someone else can do it, you can too! You have to believe you can be successful at flipping homes.
2. Begin your education. But, don?t go crazy. Read books focusing on the particular area of flipping you want to focus on. Read articles. The internet has an amazing wealth of information, but since there is so much you?ll need to be careful not to get overwhelmed. Read enough so that you are familiar with the process, but realize there are experts that will help you along the way. Understand and accept that you will need to start before you are 100% comfortable.
3. Determine your investing niche. Decide which section of the home flipping market you want to begin with. Pre-foreclosures, bank-owned, HUD? Determine how much money you would need for each type, compared to what you have available or can get. Focus all of your energies on that one type of property. You can branch out later.
4. Find a real estate agent to represent you as buyer. Select someone that focuses on the specific type of properties you want to flip. Speak with several. You will want someone that not only understands the needs of investors, but one whose personality meshes with yours. Be sure they understand your goals. You?ll likely be asking them to make creative offers and they need to be comfortable with that.
5. Get your financial ducks in a row. Check your credit. Do what you can to improve it. Determine the capital you have to invest. Determine potential partners. Determine your funding source. Research potential lenders. Don?t forget Hard Money Lenders. Get pre-qualified from three of these lenders. These steps are biggies, but don?t let them overwhelm you. Take them one at a time and remember your motivation. Don?t forget to set goals.
6. Join a local Real Estate Investors Club. Attend meetings. Being around like-minded people will keep you motivated, not to mention networking opportunities.
7. Attend seminars. These could be real estate seminars, or self-help seminars. They will both build your confidence and keep you around like-minded people.
8. Find your property/ies. Yes, do your due diligence. That means, research area comparables. Visit the property. Have an inspection completed. Determine how much money you?ll need to invest in the property to flip it quickly. Understand the local market so you have a realistic turnaround time.
9. Make an offer. Be prepared with a pre-qual letter and earnest money. (This could be a very nominal amount.) Do not forget your addendums to the offer that will protect you!!! Negotiate as necessary. Make as many offers as necessary. Remember, it?s a numbers game. Expect many offers to get rejected, that just means it wasn?t the right deal for. Know that the right deal for you will be accepted. Be patient.
10. Close on your property, rehab and flip. Start out flipping one property at a time. With more experience, you?ll be ready to handle multiple properties.
To your success flipping homes!
Brenda, the founder of Flip Houses for Millions, is a teacher turned real estate investor. Her goal, as a former teacher, is to empower others to build wealth so they too, can follow their dreams. Visit http://www.fliphousesformillions.com for free resources on how to find, buy and flip your way to financial freedom.