Real Estate Remodeling: Tools/Tips to Getting Started
Since the advent of HGTV and shows such as Property Brothers and Flip this House, among others, real estate remodeling companies have been popping up all over the country—and in large numbers. There are plenty of properties in cities across the US desperately in need of a little TLC. If you can find that diamond in the rough and make it absolutely shine, you stand to make a pretty decent profit. Spurred on by the popularity of such shows, many people would love to get into this house flipping business—the question is: what does it take to start?
The Tools of the Trade
Or do you even need tools? This will really depend on whether or not you plan to do a lot of the work on the house yourself, or if you intend to sub out most if not all of it. Utilizing subcontractors for your real estate remodeling business can be a great way for you to get into the industry even if you have no hands-on experience when it comes to things such as carpentry, plumbing or flooring.
A subcontractor is an individual or company that you hire at an agreed upon price to take care of a project. For instance, let's say you purchased a home requiring rehab and the electrical system is in dire need of updating. You'd thus hire an electrical contractor to whip it into shape. Keep in mind, with older homes especially, things may pop up that you were not anticipating. So while you may have a contract price, this could change depending on what's going on behind those walls.
You also want to work with a real estate agent who knows a thing or two about flipping houses. As they are familiar with the market, they can guide you toward those properties that potentially have the best bang for your remodeling buck. Plus, when it comes time to list and sell the property, you'll already have a great REALTOR on board.
Flipping houses isn't necessarily what you see on TV, where everything turns out pretty perfect after half an hour. It takes work, market research, some know-how, not to mention, money. You are going to have to make a major purchase after all. We would love to discuss our various loan programs available for real estate remodeling firms. We just might have the solution you need. Call today!