Top 10 'Good to Flippin’ Know' about flipping

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by RICHARD KENT

WFAA

Posted on May 29, 2013 at 8:50 AM

Updated Wednesday, May 29 at 9:05 AM

Are you ready to cash in on the unprecedented housing boom in North Texas?

Maybe you've thought about buying a fixer-upper and flipping it, but how can you make sure the project turns into a money maker and not a money pit?

Ron Corning talked to an expert on flipping homes, Justin Kettler, who now finds himself with an unexpected decision to make.

Also, Kettler shares his top 10 tips for flipping homes:

Top Ten “Good to Flippin’ Know” About Flipping
 
1. It’s competitive: The days of “thinking about it” are over. Good-value investment properties sell in hours, not days.

2. Timing is everything: Buy low, sell high? That’s the idea, and the market has the biggest say so in how this pans out.
 
3. Don’t get accosted by costs: Property taxes, realtor fees, interest (if you’re borrowing), and closing costs on both ends of the transaction add up fast. Also, get the best inspector to identify expensive problems up front.

4. Begin with the end in mind:  Work backwards factoring in your desired margin. Keep the “worst case scenario” front of mind if the market tanks. Flipping may not make sense once you crunch the numbers.

5. Know the hood: Get down to the street level. Know the average price per square foot and max all-in sales price for similar remodels. Who is your target buyer, and what do they expect?

6. Get connected: It’s not what you know, it’s who you know. Find a mentor, an established realtor, and quality sub contractors.

7. Spend where it matters: It’s no secret kitchens, baths, and closet space sell. Tired cabinets + new countertops = blah kitchen. Prepare to unwind some funky floorplans and designs.

8. You get what you pay for: Cutting corners or the cheapest this or that may find yourself selling for just that: cheap. Walk in the shoes of the target demographic, and meet their expectations.

9. Seal it with a KISS: Yeah, as in “keep it simple, stupid!" Fabulous trendy ideas may not be so fabulous to whom it matters most.  Make it special, but not too special.

10. Emotions sell: There’s a lot of travertine and granite out there. Invest on a wow factor or two to make the property stand out as a “gotta have it right now!

Questions or remarks? Email rkent@wfaa.com

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