Real Estate Elevated Review: 4 Mistakes to Avoid When Flipping a Home

The most successful real estate investors are able to buy a home at the right price, flip the home quickly and affordably, and then sell it at a great profit. It seems easy enough, but there are many things that can go wrong in each step of the process. Avoid making painful mistakes by doing your homework ahead of time. Here are 4 mistakes to avoid when flipping houses.

1. Not Having a Budget

A budget is crucial to ensuring you maximize your profits in the sale of the property. If you’re not carefully watching your expenses, you’ll soon eat up all of the profit you could have made on the house. Or worse, you could end up putting in more than you’re able to sell the house for. Stick to a strict budget during the remodeling process, and leave room for unexpected expenses.

2. Not Doing Thorough Market Research

Housing markets vary from city to city. Even within that city, the market can change quickly from month to month. In order to be successful at flipping houses, you’ll need to do thorough market research before you buy a property. Compare homes of similar sizes and with similar amenities to make sure you’re getting a reasonable deal. After you’ve made a purchase, you’ll want to continue to keep a pulse on trends.

3. Making Renovations Without the Buyer in Mind

Flipping houses is a very different process than a personal home renovation project. If this were a home you were going to live in, you might make unique design choices to reflect your personal style. But the most successful house flippers strike a perfect balance of making renovations that are on trend, universally appealing, and affordable. Be sure to keep the buyer in mind when making renovation decisions, or you may end up with a house very few people are interested in seeing.

4. Overpricing Your Flip

After all your hard work, it’s natural to feel like your property may be worth more than it actually is. Overpricing your flip will mean it sits on the market longer than other more affordable homes. Since time is money in the real estate industry, you want to avoid this issue and set the price right from the start. Do your homework and set a realistic selling price.

Learn More from Real Estate Elevated

By following these tips, you’ll be able to avoid many of the brutal lessons other real estate investors have to learn the hard way. Real Estate Elevated offers tons of other helpful advice from experts in the industry. If you’re an aspiring real estate investor or a seasoned pro looking to take your business to the next level, sign up for our free course today.

Real Estate Elevated Review: Why You Should Bundle Your Rental Properties

As a new real estate investor, you want to make sure you’re getting started on the right foot. One real estate blunder could cause you to lose a lot of money, so save yourself the pain and learn from the mistakes of other real estate investors who have gone before you. One of the biggest tips any experienced investor would tell you is to start out by bundling your rental properties in one or two states. This will save you a great deal of time, money, and effort as you learn the ropes and build your capital. Here are four important benefits to bundling your rental properties.

1. Simplify Taxes

Tax returns need to be filed by state, so if you have properties in five or more markets, you’ll also be doing taxes in five or more states. If you’re like the rest of the world, you probably want to make your tax filing process as simple as possible. Avoid the headache and stick to just 2-3 markets so you’re not wanting to pull your hair out during tax season.

2. Save Money on Travel

Good real estate investors take time to check in on their rental properties every now and then. Even if you have a property management company, you’ll need to visit in person occasionally to make sure things are going well. If you have rental properties in the same state, you’ll be able to more efficiently and affordably travel to check in. Bundling rental properties will also save you money on other expenses associated with registering an LLC.

3. Streamline Management

Rental property managers are an excellent way to delegate the day-to-day work of running a rental property. But many rental property management companies are locally owned and operated, meaning you’ll have to work with a handful of different companies if you have properties scattered across the country. Save time and simplify processes by having one or two management companies run properties in the same general area.

4. Learn the Ins and Outs of the Market

Markets are changing all the time, and it can be hard to keep a pulse on the trends if you’re trying to divide your attention between many different properties. Thoroughly learn the ins and outs of one specific market by bundling your properties in the same place. You’ll be a more successful investor once you’ve gotten to know the intimate details of real estate investment in one region.

Get More Tips from Real Estate Elevated

By bundling your rental properties, you’ll be following an important best practice and set yourself up for success in the real estate industry. If you’re looking for even more ways to take your real estate investment career to the next level, Real Estate Elevated can help. We offer free courses all over the country, where new, aspiring, and experienced investors alike come together to learn from the pros. Sign up for one of our courses today in a city near you.

Real Estate Elevated Review: The Importance of a Great Property Manager

If you’re a real estate investor with renters, you should highly consider hiring a property management company to run the day-to-day business of your property. Following contracts, collecting rent, and dealing with household repairs isn’t for everyone, and a property manager can help significantly reduce your workload.

You may think a property manager is not worth the investment, but you’ll be able to maximize your time and efforts by delegating daily tasks to someone who specializes in property management. With a shortened to-do list and less stress, you have more freedom to invest in other properties and earn more profits.

But how do you know what to look for in a property manager--one that will be a beneficial addition to your real estate investing strategies? Keep reading for 5 signs that ensure you’ll have your rental properties in the hands of a reliable person.

1. Fair Pricing

Some people may think that the most expensive property management company is the best, but cost doesn’t always correlate with quality. A fair property manager will charge about 10 percent of gross rents. Anyone charging more than this should have strong reason for doing so. If you don’t notice anything exceptional about the property manager, move on to another option.

2. Organized Processes

Property managers have a lot on their plate. They’re responsible for collecting rent on time, screening potential renters, handing maintenance requests, dealing with evictions, and much more. Inquire about the property manager’s processes and make sure they have it all together before you hire them to take care of your investments.

3. Attentive to Tenants

Tenants are sure to get frustrated if the property manager doesn’t respond to their requests and questions in a timely manner. If they get frustrated enough, they may just move out and find a new place to live, and a high turnover rate will only cost you more money in the long run. Make sure the property manager has a habit of quickly responding to tenants’ needs and visiting the property regularly to make sure everything is going smoothly.

4. Experienced

No matter how much you like a property manager, it’s best to choose someone with experience. All kinds of things can go wrong with managing a property, and the more experienced managers will know how to handle anything that comes their way.

5. Good Communication Skills

 If you’re living out of state or don’t have time to stop by the property management office, good communication skills will be crucial to ensuring things go well at your rental property. Look for someone who knows how to write clear emails, answers their phone, and responds promptly. You also want a property manager who will be an effective communicator with tenants. Those who are hard to talk to or unlikeable will drive tenants away.

Sign Up for Real Estate Elevated Free Courses

If you’re looking for even more ideas on how to be a successful real estate investor, check out Real Estate Elevated. Our free courses have helped people all over the country ramp up their real estate investment career and increase profits. Sign up for a free course today.