Here are several factors that you should take into consideration before attempting to flip a property:
- Do you have the money to fund both the purchase price and the costs of renovation? Is it money that you may need for other purposes?
- If you don’t have the funds available, are you qualified to borrow from a lender?
- If you obtain financing, can you continue to make payments both during the renovation process and until the property sells?
- Do you have expertise in the construction trades?
- Do you have the time to either work on the property yourself or supervise others doing the work?
- Are you familiar enough with local building codes so that you don’t get “blind-sided” by major changes required before inspections are passed?
- Do you know what the main areas of concern are that can add thousands of dollars to the cost of renovation?
- Are you emotionally geared to live with the risk? Will you be frantic and try to micro-manage the process? Will you lose sleep over your investment?
- Can you distance yourself enough from “ownership” to realize that the changes are not for you, but for a potential, average buyer and that the goal is to sell the house at a profit?
- Do you know local, reputable subcontractors who will work with you and show up when you need them?
- Can you work quickly enough so that monthly payments don’t eat up profits or even put you in a hole?
- Do you have a contractor’s license? In Minnesota, unless you plan to occupy the house yourself, you must either be a licensed, residential building contractor or you must hire one.
Are you still interested in flipping a house?
Here’s our deal. We can help you find a house that would have money-making potential. We can thoroughly examine the house to reduce the possibility of buying a “lemon” that will turn into a money pit. We will then give you a detailed breakdown of what we will do, how much it will cost and how long it will take to bring your property to market-ready condition. When the house sells, your profit will be the selling price less your purchase price, carrying costs, closing costs and our fee for the renovation. We work fast and do quality work. Your investment would be close to “passive,” your return, although not guaranteed, could be substantial. And you may just have some fun along the way and also get the satisfaction of being the person responsible for turning a marginal property into a fortunate buyer’s new home.
If you are serious…
Go to “Contact Us” and we will find out if flipping makes sense for you!
Licensed Residential Contractor #BC649652
“We’re ready when you are!”
507-358-3247 Manuel’s Cell