This is one of my favorite flips to date located at 66 Kingsdale St Dorchester. It went under agreement in under a week with multiple offers. Our goal was to blend old character with modern finishes and I feel we really executed our plan well on this one. If you or any one you know is looking to sell, my team and I are ready to buy anywhere in the Greater Boston area! 857-209-4450.
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How to Flip
When it comes to flipping houses, real estate investors need to understand the to keys to pulling permits. The first item you must understand is whether or not you need a long form or short form permit. This makes a big difference and can significantly increase your time frame if it is a long form. The second key is asking your contractor if they have experience pulling permits in the Town or City you are working in. It’s not a deal breaker but this can streamline the process if they are familiar with the local inspectors.
When it comes to flipping properties, one of the first things you want to look into after securing the deal, is the utility connections. This may sound odd, but many home that have been abandoned will require the new water, sewer, gas and electrical lines be installed from the street to the house. Obviously this is expected when you are dealing with new construction, but you should always confirm with the town or city when you are purchasing a distressed property.
Beware of Fake Real Estate Investors. These are the folks that go to a weekend seminar and think they are qualified to purchase your home and even say they’ll buy your house cash. While there are legitimate investors and buyers, most of the so called self proclaimed “cash buyers”‘ are fakers. Ask tough questions about their experience before you entertain their conversation.
The Dog House – A Foreclosure Tour
written by Robert Nichols
I started flipping homes back in 2009 and while I’ve learned a lot, the one constant is that nothing stays the same. More and more buyers are becoming increasingly knowledgable about homes and as a result flippers need to adjust their strategy to make sure they are selecting finishes that are in line with buyer’s expectations. As more and more buyers are watching HGTV and other home entertainment shows, they are coming to expect higher quality finishes. This is important because, if a home is not in line with these buyer’s expectations, it will take longer to sell or may sell for less vs. other homes on the market that have been renovated to a higher level.
So what does this mean for flippers? It means you need to be tight with your numbers. As construction and material costs increase, your profit margin decreases. As a result, you need to be certain you are basing your numbers on quality finishes fit for today’s home buyer when evaluating deals. In years past you could get away with apartment quality finishes and sell it quickly but buyers in todays market want a lot more. For example, in 2009 I could get away with using contractor pack cheap 12×12 porcelain tile, but I now use higher quality 12×24 tiles for flooring and smaller tiles for the shower walls. In the kitchens, I used to see flippers get away with laminate counter tops but most buyer want to see stone counters tops and to take it a step further, many want quartz stone because it is more durable than granite. This means higher budgets and lower margins.
Before you get into flipping homes be sure you have the right team and process in place that will set you up for success. I will be discussing how to do this in my courses and posts to come. Stay tuned for more!
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