Flipping Homes 101 - Sell It Like A Boss!
Flipping homes 101 - Sell it like a Boss!
After all of your hard work creating and designing your investment property, it almost seems like your troubles are over when you get the place ready for market.
At this point in flipping homes, you must realize that you are only halfway towards your goal.
Of course there are several options at this point, and all can be lucrative.
· You could sell it for a quick profit
· Rent for the short term, with an intention to sell within a few years
· Rent it out, and pay off the loan using the rental income
· Rent the property, and use the rising value to leverage and purchase other
property, while generating a monthly rental income
There is no right or wrong answer to property investment. Making the correct decision about which direction to go, comes down to market conditions, supply and demand, and the type of house flip.
Personally I am currently inclined to go with the last option, and rent out the property to enjoy the low interest rates available on the mortgage market. Because of the low interest rates, property prices are rising, and the low monthly repayments mean a decent rental return.
But a friend of mine, who is also investing, has taken a different strategy. He’s flipping houses as fast as he can, believing that rolling the profits is the surest way to go. He may be correct.
Either way we both have money invested that is growing, albeit at different speeds – unlike a savings account I must say!
But I am in it for the long haul, hoping that prices will rise and yield me a capital gain, while taking a monthly income from renting them.
But if you do decide to sell your investment when flipping homes, you must consider these obvious questions.
How do I sell it for the best possible price, and how do I make the sale fast?
The answer is the same for both questions actually.
· Get a good local real estate agent!
I know it sounds like common sense, but some people I know have just gone with the cheapest agent, thinking they will save money when they sell their property. But this could be a false economy.
Sometimes though, you can get lucky and the house sells in the first hour, no matter who you sell with.
But don’t leave it to chance and get in a pro.
Remember, they’re working for you, so get as many round as you can and let them sell you for their services. It’s like a job vacancy you are trying to fill, so they must face a kind of job interview. Ask them questions but remain friendly and enthusiastic. After all, you want them to like you if you give them the job. If they like you, they will sell harder for you.
The questions you should ask them are as followed:
· What is their local knowledge?
· How much could the property sell for?
· How many similar properties have they sold just like it?
· How many have they sold recently?
· How fast is your property likely to sell?
· What are the rental opportunities, conditions and prices like?
· Ask advice about your property- Is the finish good enough?
· General chit chat, about their company – How many employees they have?
· Who will be working with the property, and how many of them will be on it?
· Who will be your main point of contact?
The list is not a script, so think of as many other questions as you can and see how they answer. Then go with your gut on who you decide to go with.
Your decision should be based on whether they can sell to you their enthusiasm. If they can’t sell to you, how can they possibly sell your property?
Once you’ve made your decision, get your quotes in. I’ve heard of quotes as low as 0.5%, but the usual I have experienced is between 1.5% and 3.0%. This is the time when you need to get your negotiating hat on, and very kindly explain to your best choice, that other agents have come out cheaper, but you were impressed with them the most.
Tell them how you would love it to be them who takes your house flip to market, and most importantly let them know that you plan to sell more property with them if things go well.
Normally they should lower their rate, but don’t squeeze too hard. You want them to make money, because if they are making money, that means they have done their job. But there is no reasons to say that you should not both get a good deal.
If it does go well, I would recommend you stay with them every time you flip a house in the area. The more you sell with them, the greater loyalty you will garner.
You will quickly see your rate come down after every sale.
Good luck and happy investing!