House flipping is the buzz word in the real estate industry right now. Everyone and their cousin seem to be doing it, and making a success of it! Wondering how they do it? This couple is showing all beginners the house flipping ropes, by taking you through their first house flip in detail.
By leveraging hard money and finding a property through Facebook Marketplace, they made a great profit from this flip. Initially, they estimated a $100,000 profit but they ended up making about $83,000 due to various unexpected costs and mistakes. They documented their entire process, from initial purchase to final sale, sharing their insights and experiences along the way.
Here’s a deeper look into their story and five key lessons that every new house flipper can take away from their experience.
Their key milestones...
Initial Plans and Expectations: They expected to make a profit of over $100,000 but ended up with around $83,000 after accounting for unforeseen expenses and mistakes.
Key Improvements: The couple made significant changes to the property, including painting the house white, adding a bedroom by framing a closet, and installing custom cabinets.
Living room
The living room was completely transformed from a dark, closed in outdated room to a light, airy and modern space.
Master bedroom
The master bedroom had outdated French doors that were replaced with large windows to modernize and refresh the space.
Staging and Listing Strategy: To maximize their profit, they staged the house meticulously and listed it above the comparable market prices, which attracted a quick cash offer.
Sale and Profit: The house sold within two days for $460,000, well above the initial comps, highlighting the importance of strategic improvements and listing.
Learning and Future Plans: They reflected on their mistakes and costs, planning to streamline their future flips by using more efficient processes and less upfront cash.
5 Important Lessons for New House Flippers
1: Thoroughly research financing options 💵
Using a hard money loan can be a smart way to fund your flip, especially if you don’t have a lot of cash on hand. But be sure to understand the terms and interest rates. Always shop around for the best deal. Check out different lenders, compare their rates and terms, and read reviews to make sure that you’re working with a reputable company. It’s vital to find a lender that fits your financial goals and project needs.
2: Expect the unexpected ✅
Flipping houses is full of surprises! No matter how well you plan, there will always be unforeseen issues – from hidden structural problems to unexpected repair costs, or project delays. Build a contingency budget into your plan by allocating an extra 10-20% for these surprises.
To get ahead of potential problems, conduct thorough inspections from top to bottom before buying a property. Stay involved in the renovation process with regular site visits and open communication with contractors to keep close tabs on the project. Flexibility and a proactive approach will help you navigate challenges and protect your investment.
3: Make strategic improvements 🏡
Not all renovations will boost your property’s value equally. So, it’s important to focus on strategic improvements that offer the highest return. In this couple’s case, painting the house white and adding a bedroom were game-changers.
Prioritize high-impact areas like the kitchen and bathrooms, and add to the home’s curb appeal. Upgrade appliances, install new countertops, and modernize fixtures wherever you can. Balance cost and quality—high-end finishes aren’t always necessary.
The key to making the most impactful upgrades is understanding what buyers in your area want. You can then invest in improvements that align with market demands to make the property more appealing to a wider audience and maximize your return.
4: Staging and presentation is important 🛋️
Staging your property can transform it from just a house, to a dream home in the buyers’ eyes. Effective staging can lead to higher offers and quicker sales because buyers can envision themselves living in the space. This doesn’t need to be too expensive or complicated, simple touches like decluttering, rearranging furniture, and adding tasteful décor can create an inviting atmosphere.
Invest in professional photography to showcase the property online, as captivating images can attract more potential buyers. A well-crafted listing description highlighting the home’s features and recent upgrades can further entice buyers. Staging and presentation are key to creating an emotional connection and maximizing your sale price.
5: Learn from your mistakes ✏️
Mistakes are part of the flipping journey, but each one is a learning opportunity. Reflect on what went wrong in each project afterwards, and consider how you can improve. Document every aspect of your project to analyze what worked and what didn’t.
Networking with other flippers and industry pros can also provide valuable insights. Join real estate groups, attend workshops, and engage with online communities to learn from others’ experiences. Set clear goals and create a comprehensive plan for each project, outlining your budget, timeline, and desired outcomes. By learning from past experiences and planning meticulously, you’ll be able to do your next house flip more efficiently and successfully.
New to house flipping and overwhelmed by all the numbers? Check out New Silver’s FREE house flipping calculator below, to help you work out your return on investment.
Flipping a house for the first time can be a rollercoaster of emotions and experiences, but it’s also an incredible learning opportunity. By following the journey of this couple, new house flippers can gain valuable insights and apply these lessons to their own projects. Remember, success in house flipping is not just about making a profit; it’s about continuous learning, adapting, and improving with each new venture. Happy flipping!
About the Ground ⬆️ House Flipping Business duo
“I make documentary style vlogs about house flipping as beginners, showing you a world that the “GURUS” somehow fail to capture. No BS or hidden agenda, just documenting my wife and I as we hit every bump on the road while also having a blast building doing something we have dreamed about.”
The couple also provide house flipping courses for beginners, on their YouTube channel, free of charge.
