When you decide that you want to invest in homes to sell, there are some factors you need to consider. It seems like a very simple idea when you watch the various TV programs about flipping homes, but there can be some hidden problems no matter how nice the house is that you buy. You also need to keep in mind that your real estate team can be your best friend to help you find those home with “good bones”.
Here are some things you may wish to consider if investing in homes is your dream:
Finding the ideal home:
This is where our Anne Winch Real Estate Team can help. You want to get a home at a reasonable price but you also don’t want a money pit. Be very careful with the “as is” clause. You might not be able to get a conventional mortgage and you may be purchasing problems too. Before you make an offer, have the home inspected along with a contractor that can give you estimates on repairs.
Financing:
Not every financial institution may see your dreams and investment of this kind can pose a higher risk for lenders. You will need to have a higher credit score and down payment including some extra savings. Investment loans can come with a higher interest rate especially if there are appraisal issues due to the condition of the property.
It takes cash:
If you think that millions of dollars are in your future, you are probably mistaken. That is not to say that you won’t make a living flipping homes, you just have to manage your expectations and your cash flow.
In the beginning, it takes a sizable amount of cash. You will have renovation costs, inspection, building permits, utilities and taxes to pay along with your mortgage while you are getting the home in shape to sell. Make sure that you have a solid financial plan in place with a bit of wiggle room for unknown repair costs that might crop up.
It takes time:
You probably won’t be doing all the repairs yourself but you will want to put in some elbow grease to cut down on costs. You need to find the time to get quotes, hire and arrange for contractors, invoicing, and checking in on any progress on the home. If you also have a full-time job, time can slip away quickly and you will find that you will be assuming costs longer than you may think.
Layout and design:
You may be savvy about repairs but having an eye for design is a major element for flipping homes. You will need basic knowledge of construction, project management and building codes and compliance and insurance.
How our Team can help:
- We can get started right away to find homes within your budget that are solid, in a good neighbourhood and have the potential to sell quickly. We often know of homes that are going up for sale before they hit the internet so we can always be on “high alert” to help you find the right home.
- We know professional contractors that can help you with the design of your home and repairs.
- We also have contacts with professionals from building inspectors, brokers, insurance and legal that can help.
- Our Team will be available to help you with the purchasing, marketing, and selling of your home along with our free home staging to help ease up time and money that you can use elsewhere.
Our Anne Winch Real Estate Team can help with negotiations of purchase to the re-sale of your home when you are ready. We pride ourselves in helping our clients negotiate through some of the stressful situations of landing a deal for purchase and selling that home after it has been renovated. Give us a call and see if we can help you fulfill your dreams of being an investor in real estate.