Flipping houses can be extremely complicated and expensive complicated. It can also be the easiest and most profitable way to make life changing money in a relatively short time.
A helpful acronym comes to mind in regards of how to do it right, which is: KISS
The temptation to go overboard and overthink your renovations can be all too much for the beginner when flipping houses. I was exactly the same before my first house flip, and my initial budget for renovations went through the roof. I was undoubtedly very stupid, getting carried away without an initial plan of costs and just how rapidly they could mount up.
Learning how to plan, using resources saved me from spending thousands over the top and leaving me very little in way of profit.
I remember shopping for tiles, and selecting the grandest and best they had in the store, thinking that the key to selling for big profits was to add as much wow factor as possible. Don’t get me wrong, there’s nothing bad about a wee bit of wow when you are buying new fixtures and fittings.
But just make sure it falls into your budget by doing two important things:
1.Look around for the best deals
2.When you find them, negotiate hard!
Try not to buy the fixtures and fittings as soon as you find them, unless they are ridiculously cheap.
Instead, you should write down the price and enter the value into an excel spread sheet along with everything else in your budget. This is so important for making profits flipping houses!
When you get your prices down, and you have them displayed in front of you, the urge to spend like crazy will be gone, I promise. It’s a pretty sobering experience to see all the zeros stacked up for your total spend.
This information however can now be easily tinkered with, and adjusted here and there for the best possible outcome. You may look at your budget for painting costs, and decide that actually, if I go for magnolia, which is cheaper, I could divert some of those savings into stunning tiles in the bathroom. Or you could go for the mid-range kitchen appliances which look top of the range. You can find them with a cleaver piece of shopping, and use the thousands saved to upgrade your work tops to granite, or upgrade the flooring.
If you take the time and carryout a small amount of work to save money and still get the wow look. Then you’ll not only make more money when it comes to selling your property. You will also make it far smoother to find a buyer and sell it fast.
In this post I will be giving away a Free Budget Excel document, which I used to budget for my renovations. It will include exactly what I spent throughout the project, and will include box’s next to my budgets numbers, where you can enter your own prices for comparison. I Hope you find this Free budgeting tool useful.
Good luck and Happy Investing!