While house flipping is a great way to make a quick profit, this endeavor requires realistic expectations and well-laid-out plans for every step of the process in advance. All too often, wide-eyed first-time buyers entering the fix-and-flip market are excited by television shows that make the process appear quick and easy. While it is not always easy to reach out for advice, jumping into the property flipping pool without knowing the financial depth or the amount of work involved and having a firm grip on the timeline is foolhardy. Here are five tips for a successful property flip in Metro Detroit.
Do Your Research
Do your research to make sure you have checked off everything on the list that makes for a successful property flip in Metro Detroit. In case you haven’t heard, the most critical factor in real estate value is location. If the Metro-Detroit real estate market is not as familiar to you as the back of your hand, you should work with a trusted and experienced investor, like the experts at Pinnell Enterprises, LLC, who know the market. You want to find the best property within your budget because happening upon a cheap house is not the same as locating a good deal. From the initial inspection of the property to reliable estimates of time and cost for repairs, it is essential to your success to practice due diligence as a routine part of your business before you ever close on the deal.
Consider Professional Staging
Understanding the factors that influence buyers in the Metro Detroit real estate market has grown, staging for interior features and design has become an intricate part of successful property sales. It is no different when you are involved in a property flip in Metro Detroit. Your first venture into flipping is not the time to express yourself creatively. While you may favor purple, you want the space to be neutral, to allow prospective buyers a blank canvas to imagine themselves occupying the home. Personalized items and decor tend to make a claim on a property and devalue it in the eyes of buyers, much like a noticeably used and returned item sitting on a store shelf; sensing previous ownership, makes us less likely to want to pick it up or own something. Consider professional staging with furniture and decor to enhance the property. Your marketing plan should include professional photography and the 360-degree-virtual tours provided by drone pilots, allowing buyers worldwide to view your property as if they were there.
Make a Marketing Plan
Sticking a sign out in the yard is essential, but it is no longer enough. Devise a marketing plan that meets the demands of today’s buyers for a successful property flip in Metro Detroit. Technological changes to how buyers locate properties mean you have to have your listing in all the right places online. As buyers scroll through listings, you must capture their immediate attention with your photos. Your marketing plan should include professional photography and the 360-degree-virtual tours provided by drone pilots, allowing buyers worldwide to view your property as if they were there.
Pay the Right Price
What you pay for the property is the determining factor in realizing the highest return. You have to do the math properly for a successful property flip in Metro Detroit. Paying the right price for your investments means you cannot leave anything out of the data and that your estimates must be on target. Remember, too, that you must have reserves for whatever can go wrong. Any errors during this step of purchasing an investment would come off the profits you are anticipating and could end up being a loss if you did not use reliable methods to calculate your numbers. Getting a feeling about a property or making decisions based on emotions about the current market value, do not factor into any of the formulas successful investors use to calculate the profitability of a property.
Achieve Success With Teamwork
Have a strong support team in place before you buy for a successful property flip in Metro Detroit. When you add up all the numbers to flip an investment property, it all boils down to teamwork to achieve success. The weakest link equates to the strength of a chain, and when you are investing in flipping a property, learning that you have a problem after the fact can cost you valuable time and lead you to financial disaster. Working with a professional buyer like those at Pinnell Enterprises LLC, will help you avoid costly mistakes. An experienced professional will listen and help you map out a plan to suit your needs.
Article written by William Pinnell of Pinnell Enterprises LLC. He can be reached at (734) 245-9654.
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