First-time flippers make the mistake of assuming everything should be done with cash when flipping a house. This is certainly an option, but not the only one. Hard money loans can help you finance the costs required for successfully flipping a house. Aside from financing, there are a few things you should consider when flipping real estate.
You need to ensure you purchase materials based on the price range you plan to sell the property in. A million-dollar house needs high-quality fixtures, appliances, and interiors. A discounted kitchen set from a hardware store will not be enough to successfully turn a house into a hot commodity on the market. Cutting corners is noticeable by buyers and their home inspectors, so find the right balance when it comes to looks and price.
The quicker you finish the flipping process, the more money you will make (without, of course, sacrificing quality). Calculate property taxes, insurance, investors, and mortgage payments you will have to pay each year – that certainly puts things into perspective. Each year that passes, a new wave of costs comes. Save money and flip the property as quickly as possible.
Keep an eye on market activity. Real estate is an ever-changing market, changing on as little as a quarterly basis. There can be a different market and different buyer activity by the time you turn around to sell it. Pay attention to what is going on and stay ahead of the trends.
Want to learn more about Florida hard money lending and applying for a loan with Monroe Funding Corp? Contact your local hard money lenders in Miami, Orlando, and Palm Beach at Monroe Funding.