When it comes to real estate and that whole world, navigating it can certainly be a challenge. This is especially true for any first-time investors or curious parties. Yet, more people than ever are starting to get involved because of how booming the housing market is! Flipping in particular is something that is getting the attention of a lot of people.
There is good reason for this, of course. The data shows that it can bring in a lot of profit for those who hone their craft and can truly master it. Just know that it does require a lot of work, so you should not try it if you are not prepared to do that!
Thanks to the rising popularity, there has been an increase in influencers and public figures who are looking to assist people as they enter the market. Jake Leicht is one such person. While I will not focus on him too much today, do bear that in mind as I explain the process of flipping and what it may involve.
What is House Flipping?
Let us dive right in! First of all, what is “flipping,” and why has it become such a common part of our collective lexicon? It is simple, thankfully. Think of it as when you purchase an item or asset and you intend to keep it for a brief period of time in which you improve it somehow, and then you sell it later for more than you paid for it.
Apply that concept to real estate, and you are pretty much already there in terms of understanding what it is! While the process does tend to be a bit more complex, it is still nothing to be scared of. Now, I will discuss what you might do in such a project.
How Does it Work?
There are a few different ways that you can approach this, just to be up front about it. You can find out a bit more about that here, https://www.investopedia.com/terms/f/flipping.asp, if you would like another perspective on it. Approach it as a dichotomy, focusing on the pros and cons of each and whether you want to go for a higher risk-higher reward approach, or just play the market instead.
So, for the first method, it will involve a lot of knowledge in regard to how real estate markets operate. Essentially, you watch for properties that are for sale for a fairly low price in a neighborhood in which the costs are rising rapidly. Then, you wait for those prices to increase further and list the home for sale again.
This can certainly garner you some profit. However, it will not be very much compared to the other method that I will be explaining. I simply mention it because it does exist, even if it will not be the main thing that I focus on here today.
Moving on to the other method, it will involve home renovations. The degree to which you do that will vary, of course. To some extent, it will depend on how much effort that you want to put in versus how much risk you are taking by purchasing the property in the first place. Finding that balance is what most newcomers to this field struggle with.
One of the hardest parts of the process is figuring out where to get started. This seems especially true when we do not intend to live in the property later down the line, so the goal is to make it appealing to the average consumer. How can we really achieve that goal?
My go-to method of doing so is by finding inspiration is to look at external websites. Social media is one way that we can do that. In fact, some of those influencers that I mentioned above have pages that offer some!
Now, if you want to get more information about Jake Leicht, this is the route that you could take. Most public figures have an Instagram page or some other type of social media platform, so that is an option to utilize as well. So long as you find something that stands out to you as appealing, you are on the right track.
Just remember that the goal is not necessarily to cater towards your own likes and dislikes, but to instead think of other buyers. What is popular on the market right now? What sorts of paint colors or interior decorating make people more interested in a property?
If you are not sure, that is okay. Inspiration blogs can really come in handy for those instances. So, you will pretty much always have at least one place to turn to if you get stuck!
Some of the top things that people do to increase the value of a property via renovation is fixing up a kitchen by installing better countertops or appliances or doing something similar in the bathroom. Fresh coats of paint can also go a long way in sprucing up an interior, or even adding hardwood floors.
Often, in older homes, if you rip up the carpets you will find the wood already there. All you really need to do in those cases is to polish it afterward. Be careful if that is your plan, though, because it is not always the case. You can talk to contractors as well if you are ever uncertain about a renovation project.
Even putting some work into the exterior of a property can raise the value and make it more appealing to buyers. By touching up the landscaping, you can boost that curb appeal immensely. Small things like a bird bath or wishing well can go a long way.
While house flipping may not be something that everyone is interested in or wants to pursue, there is definitely some profit to be made if you do it correctly! Remember to utilize the sources and inspirational blogs that I shared today, since it may be able to assist you on your journey.