Popular shows on HGTV have made the idea of flipping houses for profit seem like an easy task. However, before you begin investing in property development, it’s important to understand the flipping process, particularly if you have never bought a house before. If you’re serious about renovating houses for profit, begin by seeking out a real estate lawyer or real estate law firm before considering buying a house.
A real estate attorney understands property development laws and laws concerning the area in which you may decide to flip a house. Unbeknownst to you, without the presence of a real estate lawyer you may accidentally purchase a home within a zoning restriction.
Once you’ve found a real estate attorney, it’s time to begin the process of flipping a house. The following are some tips to begin you on your house-flipping journey.
- Choose the best area to flip a house
Potential homebuyers are more likely to choose a house that doesn’t meet all of their wants and needs if it’s in a good neighborhood. Therefore, before you begin looking at houses and property development, get a good feel for the neighborhood. Talk to people about the school systems and do your research on the average crime rate. Looking at the average prices of the houses in the area will also tell you how likely it is you’ll make a profit.
Unless other houses are also being renovated in the neighborhood and are being given a new face, don’t choose an older neighborhood without much class to do your renovation. There’s a big chance you won’t make a sale.
- Know who you’re buying from
If you’re looking into older properties, there may be a chance that you’ll be buying the house from the California government. Title 10 of the California civil procedures declares properties that have been abandoned as unclaimed. When a property remains unclaimed for three years, the California government then claims the property.
Therefore, when looking at older properties be sure who it is you’re buying the property from. There may be a chance that you need to purchase the property from the state government itself.
- Do inspections
Your real estate lawyer will urge you to have an inspection done on the property before you decide to purchase it. If you can, have a professional come in and inspect the property for any damage to the flooring, base structure, roof, electric, or water systems. In certain cases, you may not be able to identify particular damage even with an inspection, which is why renovations can be incredibly taxing on one’s budget. However, if the homeowner allows it, an inspection doesn’t hurt to see if the property is really worth your while.
When deciding to go into the business of flipping homes, it’s important to understand the business and real estate side of the process rather than just the design standpoint. A critical mistake such as choosing not to use the assistance of a real estate attorney, buying a home without analyzing the neighborhood, and failing to know who owns the property or failing to perform an inspection can lead to limited sale possibilities if you even manage a sale at all.