How to Start Your House Flipping Business

5 Steps to Starting a House Flipping Business

Starting up a house flipping business can be a fun, rewarding career—and a lucrative one. If you are passionate about house renovations, house flipping for profit might have crossed your mind. Getting started can seem intimidating, especially if the market isn’t ideal. But if you know what you’re doing, house flipping can be simple. These basic steps outline what you need to do to get started flipping houses.

Determine Your Budget

The first step is to determine how much your house flipping business is going to cost to get started. This amount will vary depending on where you live. Your business expenses will include purchasing an investment property, the labor and supplies for renovation, and the costs associated with selling the house. Take a look at what investment properties are selling for in the current market where you live, and price out the costs for things like paint, contractors, bathroom renovations, and more. These estimates should give you a good idea of how much you’ll need to spend.

Look for Investment Capital

Once you’ve determined your business expenses, you might feel a little overwhelmed. But keep in mind that you won’t be using any of your own savings. Rather, you’ll be working with an investor or taking out a loan. When considering costs and potential profits on a particular investment property, factor in the investor’s share of profits or interest and other lender fees. Figuring out the best way to fund your business can be a harrowing process, which is why workshops seminars like the Tarek & Christina Seminars tackle the different ways to go about getting financing to fund your real estate deals.

Create a Team

House flippers work for themselves, but they don’t work alone. Start networking within the local real estate and house flipper community so you can find trusted realtors, inspectors, and contractors. Meet with and interview these contacts and determine who you might want to work with on your house flipping projects. Keep in mind how much these people charge—you will need to invest part of the money set aside for rehab into paying them.

Research Local Law

Brush up on local laws, codes, and regulations that are relevant to house flipping. You’ll want to ensure that you understand and operate within the law before you even look at a single property. Some states may require that you be licensed as a contractor or a realtor before flipping houses. Also, make sure you understand construction codes so you can rehab houses up to local safety standards.

Get Going!

After these preliminary steps, you are finally ready to get started finding investment properties. This is the exciting part—and the difficult one. Finding and buying a house to flip can take work, grit, and patience. There are a lot of factors to take into consideration, including the quality and market trends of the neighborhood, the potential of the house, costs of needed repairs, estimated profits, and your ability to make the needed repairs. Research your first property carefully; don’t just jump at the very first opportunity you find.

These steps will help get you going, but there’s a lot more you need to know, do, and understand to find success along the way. You can find more tips and details about how to get started house flipping by enrolling in Tarek & Christina Seminars, which have helped many beginning house flippers. Once you get started, house flipping gets more and more fun, and—with hard work and patience—profitable.

Learn more about Tarek & Christina Seminars today.