Flipping homes 101 - What to do on when you get the keys!
Once finance has been arranged to purchase your house flip; and you find yourself inside a wreck of a home you plan to transform, remember one thing –
When you first looked around the place with an investors eye. You may have been excited about all the changes you could make to the property when you eventually acquire it. But now you own the monstrosity of a home, and you’re standing inside of it for the first time as the owner, the reality of the situation will suddenly comes crashing down on you like a tidal wave. In my case it was more like a tsunami, but with experience you learn how to turn those fears into excitement once again.
On my first time flipping a home, I was so nervous, thinking about all of the things that could go wrong. There was so much construction and planning to carry out that for the first few weeks, I hardly slept a wink.
But once you're involved on a day to day basis and you’re smashing your goals, you forget all about that first day when you walked though the properties front door.
It’s very similar to climbing mountains or starting at the bottom of a very tall ladder. You look up and see the top. But the climb is so high, so dangerous with unknown perils all the way up.
The first step is always the hardest and the most stressful, yet once you begin the climb, all of the pressures melt away into the present. You even forget to look up or down anymore because you are so engrossed in the now, you then start to enjoy yourself.
The climb is now exciting.
That’s what I told myself when I walked into the horrors of my second house flip. The musty smell and hoarded collection of junk and dirt told me the summit of my new mountain would be hard to reach.
But reach it I would.
Fundamentally the shirt sleeves need to be rolled up straight away, and you need to attack the house from day one.
This means you need to be prepared before you even step into the place.
Success in Flipping homes comes down to planning.
Before I actually begin renovations, I've priced up everything. Including new kitchens, new bathroom suites, carpets or other flooring, estimates from contractors and most importantly the contractors availability.
You need them to be in the house and working asap, so I let them know the day I’ll get the keys to ensure they have it booked into their diaries.
The more homes you flip, the better you will become at planning the renovations.
But always have a plan, and then get to it.
The first thing you should think about doing on day one is clearing the place. A blank canvas is the best thing to work with, so remove crummy wallpaper, flooring and get the house back to bare walls and floors.
After you have done this, look at what services have to be updated or installed. Electrical, plumbing and insulation should be planned in once the house is clear. It not only gives the contractor room to work, but also saves any damage to any new fixtures and fittings.
Once the services, including drainage have been taken care of. Get the house plastered where needed. Try not to scrimp with this. Buyers like smooth clean lines, so if a wall is 50/50, get it done!
While the plasterers are at work and while it dries, use the time to tidy up the exterior and curb appeal of the home. Make the garden presentable and perhaps update or rejuvenate the widows, cladding and roof.
Then when the plaster is dry, paint the walls, ceiling, doors and frames before the new flooring goes down. After all, you don’t want to get paint on the lush cream carpet.
When the flooring and other work is done, it’s time to clean. Consider your property as a product.
You wouldn’t put a product on the market unless it was in tip top condition. Flipping homes is no different. Only when it’s ready, revalue the home and then sell using local agents only.
In the next post I will explain why you should use local agents. But for now, happy investing and good luck to you all.