by Brook Walsh
on Thursday, October 29th, 2015 at 8:35pm.
The entrepreneurial spirit certainly comes alive in the industry of flipping Northern Michigan homes. It tends to attract keen investors, savvy real estate enthusiasts, and handy contractors. Interested in jumping into the business? Check out our tips to see if you’d pass muster, and let us know if you’d like to dive in!
Building Business Savvy
Your biggest asset before you start flipping homes is your expertise. You’ll need to study up on the Northern Michigan real estate market, not to mention the essentials of flipping. Your business savvy will help set you apart in the eyes of the experienced pros.
Look for your niche: What kind of homes do you want to flip, and where are they available in Northern Michigan? What can you afford and reasonably accomplish?
Flipping a house is not a solo project. You’re going to need a solid team of pros at your side before you purchase your first project: a real estate agent, home inspectors, contractors, and designers. You name it, and they can come in handy during the flip.
Build a network by attending flipping seminars, meeting with real estate agents, and researching the local pros. Create a shortlist of experts and make appointments to discuss flipping properties.
When the moment strikes and you find the right house, you won’t be scrambling to find a contractor.
It’s particularly difficult for new flippers to get the financing they need for their short-term investment. Chat with your real estate agent about lenders who’ve worked with flippers.
Knowing Your Numbers
Cost is a key factor in your profit, and there’s much more than the purchase price to consider. Everything from closing fees to home inspections to carpet samples will chip away at your profit margin.
When you’re searching for homes, get your agent to calculate the hypothetical market value of a property after renovations. That’s your baseline from which you’ll subtract all of your costs and your ideal profit. If what’s remaining matches up with the price tag, you’re on the right track.
Brook Walsh is from Northern Michigan and understands lifestyle based real estate investing which is one of the reasons he's chosen to pursue his dream of helping real estate investors with their home buying needs. Learn more about Brook or start your home search now.