If you are being a mumpreneur and flipping a house, ideally, you want to find a property below market value, spend money doing it up, and increase the value so that you sell at a profit when you sell it. It’s a good way to earn a living! But like with everything, there is a learning curve to business, and you may not get to those sky-high profits right away. For one, this isn’t a get-rich-quick business. If you want to flip houses, it takes time, effort, and some pretty hefty resources, so be prepared for that on day one.
So, here are some things you need to remember when you flip a house. At the outset, you will spend most of your time finding the right property. Depending on the market, this could take weeks or even months, and then you are going to need to apply for financing!
You are going to need great credit! You cannot get into house flipping on bad credit. Unless you have enough cash to pay for a home and all the necessary renovations, you are going to need some kind of loan, and lending standards are tighter than they used to be. Your first step is to check your credit report to find out your score. If you don’t have great credit, it’s time to start building a great credit score now. Then, pay your bills on time, pay down your debt, and keep your credit card balances low.
Great locations are imperative in house flipping; it’s a good idea to find a home in a desirable neighborhood or one that is on its way up. You can improve a house as much as you want, but it’s a long battle to improve the personality and safety of a neighborhood on your own. So look for areas with rising real estate sales, employment growth, and other indications. Avoid neighborhoods with a high number of homes for sale; this could be a sign of a depressed local economy or a sign that neighbors are leaving due to crime or development.
You are going to need a conveyance solicitor to help you through the process. A property solicitor will go through the legal process of buying a house, effectively transferring legal ownership of the house from one person to another. In the UK, this is known as legal conveyancing.
While technically, you can carry out the residential conveyancing process yourself, it is a high-risk thing to do, especially as a house is likely to be your largest investment. The conveyancing process is complex, multi-faceted, and all too often, problems arise. Juggling it all is going to be a nightmare! A skilled conveyancing lawyer will be able to make sure all due diligence is carried out on the property you intend to buy. This includes troubleshooting any issues that may arise, advising on the necessary searches required, sending inquiries out, approving the contract from the seller, and managing exchange and completion. In addition, they will ensure that all legal requirements are met and that your rights are protected.