House flipping is an exciting and profitable business. However, it’s imperative to point out that you must take certain precautions to protect your profits. For instance, you must flip your property at the right time.
When is the ideal timeline to flip a house? When it comes to flipping residential properties, timing plays a huge role. If you handle the project well, a solid timeline will cut your total costs, and help you make more money at the closing table.
This is why it’s critical for you to be efficient with your work. We will now take a close look at 5 practical tips that can help you create the ideal time line to flip a house.
1. Target Desirable Neighborhoods
Is sales activity taking place in the neighborhood? You should focus on investing in neighborhoods that have heavy sales activity. It will be easier for you to flip your property in a timely manner.
2. Create a Spreadsheet
Creating a spreadsheet will help you stay on top of your project. Scheduled work should have a start and finish date. You can record these dates on your spreadsheet.
3. Respecting Deadline for Financing
Hard money lenders and private lenders are great sources for real estate investing capital. It’s vital for you to keep in mind that you have a deadline to repay the loan. You may have 6 months or 12 months to flip your property. This is why you cannot afford to waste precious time. You must find an end-buyer before the loan is due.
4. Hire Your Contractors Ahead of Time
Seasoned real estate investors know how important it is to hire their contractors ahead of time. There’s really no reason why you shouldn’t do the same. This simple tip can help you stay ahead of schedule.
Why do some real estate investors fail at flipping residential properties? They procrastinate with hiring their crew. This is a recipe for disaster. Hiring your crew before getting the subject property under contract will work in your favor.
5. Hire Dependable People
Whether you deal with independent contractors or general contractors, it’s important for you to hire dependable people. Dependable people will work extremely hard at making sure their work is completed on time.
You should also make an earnest effort to partner with dependable wholesalers. Working with reliable wholesalers will put you in position to get great deals.
Real estate investing can help you become financially independent. There are several ways of making money in real estate investing, but the flipping homes model is extremely profitable. If you follow the 5 tips listed above, you will have the perfect timeline for flipping residential properties.