The most difficult part of house flipping is finding a buyer.
House flipping is a real estate investment strategy in which a individual or entity purchases a property with the intention of selling the property later at a profit. Just like most investments, flipping a home is a gamble that could result in a very small profit or no profit at all. In worst-case scenarios, an investment property may not sell for a very long time, if ever. It is important to establish a budget that includes funds for possible repairs and upgrades.
Instructions
1. Focus on certain areas of Houston in which you would like to purchase an investment property. Contact a real estate agent to request data on comparables for the area. Comparables, also known as comps, are homes in close vicinity to the area of interest. The comp information will show the date a home was sold and the amount. It will also list features and details of the home. Recent sales will give you a good idea of what homes are selling for in your area of interest.
2. Secure financing with a bank or credit union. If you will be using your own capital, obtain a letter from your bank that declares that you have adequate funds to purchase a home for a certain amount. This will save time during the home search as you will know exactly how much house you can afford.
3. Search for a property. A real estate agent will have access to resources to expedite your search. Narrow down the list of possible purchases and arrange to see the homes with your real estate agent. Advise the agent that you are purchasing a home with the intent to flip it. The real estate agent should be able to advise you of what homes might work best for this type of investment.
4. Make an offer. The real estate agent will compile the paperwork needed in order to submit an offer to the listing agent of the property. Usually, the listing agent will respond to the offer within 72 hours to advise whether or not the owner of the home accepted the offer.
5. Complete the purchasing process with the help of the real estate agent. This process entails obtaining an inspection and appraisal of the home and scheduling a closing with an attorney. During closing, you will sign legal documents and pay all necessary fees.
6. Make any necessary repairs and updates to the home. Contact a real estate agent to list the property and wait for a buyer.
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