Ready to start flipping houses?
HERE’S WHAT YOU NEED TO KNOW.
by Saurabh Shah, Co-founder of InstaLend
L et’s talk frankly at the outset— flipping houses is a huge undertaking. It will require hard work and determination. It will also be one of the most (potentially) lucrative business ventures you’ve undertaken. Success in real estate, as with all success, isn’t guar - anteed. But with the right approach and a few insider secrets, you’ll be ready to build the financial security you’ve dreamed of. In this article we share the lessons we’ve learned at InstaLend—one of the country’s fastest growing private lenders—to help you get started. What Is House Flipping? “House flipping” is a general term. It’s not any single exit strategy, but rather it’s a means to an end: the investor simply connects the original seller with an end buyer. The “flip” refers to the home changing hands. Flipping involves either rehabbing or wholesaling. Rehabbers buy homes under their market value. They typically target distressed homeowners who are moti - vated to sell at a discount, which means higher profit margins and a stronger deal. Once acquired, the home
is brought up to market value through renovations. Some “flips” need a lot more work than others, and the after repair value (ARV) will help you determine how much money should be spent. After renovations, the investor will then proceed to sell the home to an end buyer for more than they’ve spent. Why Flip? There are few better ways to build the life you want. Flipping takes time, patience, and capital. The rewards are time, capital, and the flexibility to live life as you choose. For most of us, that’s more than enough reason to get started. HOWTO STARTYOUR HOUSE-FLIPPING BUSINESS IN FOUR STEPS Starting a house flipping business might feel intimidat - ing, but it shouldn’t. Here’s a proven five-step system to make the process as painless as possible.
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