What is Flipping? “Flipping” is where an investor purchases a property — usually for less than full market value, makes necessary repairs and updates, then sells it for a profit — within a relatively short period of time.
What do you do, really? I don’t just buy and fix houses. I invest in properties, fix them, and flip them. Flipping properties has the potential to yield substantial earnings, however, it’s not always easy. The economy affects the way real estate is purchased and sold these days, especially from an investor’s perspective. Lenders have increased scrutiny of buyers and investors. Some investors have difficulty finding qualified buyers. During the process, investors are financially responsible for monthly debts involved in holding investment property, including mortgage payments, taxes, insurance, utilities, and maintenance until it sells. Investors must anticipate paying expenses for 4-8 months. I look at properties and weigh value, opportunity, return on investment with the local economic indications to make optimal real estate deals.
How do you do it? Flipping properties requires the ability to perform a detailed analysis including ways to economically improve the property while maximizing profit. I evaluate the market to predict what the value will be after repairs and updates. For this, I bring together my experience and expertise with a Realtor who has investment experience and contractors who understand how to repair or rehab a property from the perspective of the investor. This point of view of real estate is critical in order to navigate the intricacies involved in flipping. Realtors are taught to sell properties so they are frequently less experienced when it comes to investing.
How long does it take? A typical project is 5 months from start to finish. This can be more or less due to complexity, materials availability, or the ability of the team.
Do I need a Realtor? As a real estate investment professional, I have developed an impeccable reputation and surround myself with a talented, trusted team. I can assist you to find the Realtor or Contractor you require. In general, Realtors are licensed to sell property and contractors are only responsible for making repairs. Some good advice: do not hire Realtors or Contractors for investment purposes that currently don’t own real estate or not personally actively involved in buying real estate.
What repairs should I make to get top dollar? Some people get carried away and do too much. You don’t want to flip the most expensive house on the block. Do the work to bring a house up to code, aligned with current standards, and on par with other houses in the neighborhood. If you make simple improvements, you will be able to sell your property for top dollar and maximize your profits. Here is a look at key areas:
- Kitchen & Bathrooms: Update them from top to bottom—for style questions, look at homes that have sold for top dollar per square foot in your area and copy materials used.
- Flooring: In most flips, use laminate hardwood flooring in the major living areas, and carpet in the bedrooms. Laminate hardwood flooring is difficult to tell apart from real hardwood, it’s more durable and scratch resistant; it’s also less expensive.
- Paint: Use earth-tones and paint every room in the home using flat paint if the walls have a lot of minor flaws—otherwise, use eggshell.
- Roof: If the home needs a new roof, replace it—and factor this into costs before investing in the home.
- HVAC: Make sure the home has a working heating and cooling system—in some areas A/C is now mandatory.
- Garage: Other than paint, do not spend much money here.
- Landscaping: The rule is to budget 1% to 2% of the final expected sale price of your home for landscaping—it’s amazing how it can increase perceived value of a property; so plant fresh flowers the day before putting the house on the market. It is said that you get a $10,000 return for every $1,000 you spend on landscaping.
- Patio: A simple deck dressed up with two chairs and a table, plus a couple wine glasses, makes an awesome impression for the potential buyer.
Make sure your general contractor addresses each of these in the quote. Prepare to maximize your profits.
How much do investors make on a Flip? Of course, it varies. Per RealtyTrac (11/20/2014) it is reported that Investors are averaging $75,990 (gross) profit per flip.
What kind of cabinets do you create? C. Palomino Industries creates custom kitchen cabinets, bathroom cabinets, office cabinets, entertainment centers, laundry room storage, playroom cabinets, and even garage cabinetry for customers. These can be tailored for any decor and to fit any space.
Why should I choose a Custom Cabinet Maker? When you work with a Custom Cabinet Maker, you get your exact choice of design and finish. Your cabinets will meet exact measurements from an experienced professional. They will be custom built from domestic materials and include your selected features like dovetail drawers and soft close hardware. With custom cabinets, you can choose superior materials, hardware, and construction methods so they will stand up to wear and tear. Let us create a plan for you, or we can work from plans by your decorator or designer.
With stock cabinetry, your only options are standard cabinet sizing plus fillers; this limits choices and leaves a lot of wasted space that you could use. Custom guarantees your designer works with a perspective tailored to your needs—and you get something unique to you.
What makes your photography unique? With 80 percent of homebuyers starting their house hunt online, “pix appeal” (how good it looks in photos) is a top way to make an impression with buyers. Composition is key to creating beautiful photographs. When showcasing your home, some views are usually more pleasing than others. And, the perspective will vary depending on your audience. It is important to highlight certain details. Taking the time to meaningfully compose a photo to remove distractions and frame featured areas makes a difference for the end result. Adding the birds eye view via Drone videos and 360 views (without all the fish-eye distortion) will give buyers a complete picture of the property.
What is your referral network all about? Having worked with many contractors across disciplines, I bring together the best of the best talent for a tried-and-true team I can rely on to get the job done right. And, I refer these skilled people to others who desire flipping professionally or renovating personally so they can rest assured that they find a strong team to complete the work on time, in budget, and exceeding expectations.
Why are referrals important? When you are looking for skilled assistance, it is important to know the experience and integrity of those you hire. I have built a referral organization that combines the very best of the craftsmen and contractors with whom I have worked, face-to-face and hands on, in many projects. My network of skilled, professional contractors and subs is built on trust, integrity, and strong ethical standards. You get that assurance when you hire a team I recommend. The fear of being taken advantage of is a number one reason many people don’t trust others. My referral network will take away that fear so you can know you are in good hands.