If you love renovation projects, have a savvy mind for finances, and have always wanted to be your own boss, then it’s time to consider house flipping in North Carolina.
North Carolina has been seeing an increase in population, and the housing and construction markets are booming.
House flipping involves purchasing a property that needs improvement, getting it renovated, and turning around and selling it.
As you gain more experience, you’ll be able to make the process more efficient. With house flipping, speed is the name of the game. You want to make your investment and then turn around and make a profit so you can invest in the next property.
Getting Licensed as a Contractor
A lot of flippers decide to perform renovations themselves in order to save on overhead—- others just like to be more hands-on. However, for large renovation projects and flips, you need to be a licensed contractor in order to do the work yourself.
The first step is to take a prep course and study for the NC general contractors license exam. A prep course will help you prepare for the exam while also giving you an in-depth look at renovation processes and licensing types.
You will have to pass the exam before you can apply for a license. There are different types of licensing, and they all have their own fees. An up-to-date prep course will help you choose which license works best for your plans.
Start with a Realistic Budget
You need to get familiar with project costs and home financing to be a successful flipper. The idea is to consider all costs involved, including the purchase price for the home, carrying costs to keep the property running while you renovate, and closing costs during selling. You need to estimate whether a purchase will reasonably sell at a profit.
When you’re first getting started, network with local real estate agents and lenders. They have insight into the market and can help you choose a property with potential— and lenders can walk you through the different ways to fund purchasing the home.
Do Thorough Research
You want to understand the housing market in the areas where you invest in properties. You will also need to be familiar with local regulations and ordinances before you start renovations. Any home you flip must be up to code to sell for what it’s worth.
When choosing a property, look for desirable neighborhoods and areas that have the potential to increase home value. You will also need to explore the house itself and thoroughly examine what it needs. Many flippers look for auctions and foreclosures to purchase as-is properties, but that usually means they need a lot of work. You want to be sure property values in the area reflect a selling price that will recoup your costs and make you a tidy profit.
Have a Solid Renovation Plan
Once you’ve closed on a property, create a detailed plan outlining the scope of work, estimated timeline, and estimated costs.
This will help you stay organized throughout the project. With the scope of work, list out different projects and then break those projects down so you have a solid map of what needs to be done.
You don’t have to do all the bits in order, but you want to track what has been done and what still needs to be done. If you work with contractors rather than getting licensed yourself, they can help you learn to estimate timelines and costs more accurately.
Remember to leave time for clean-up. Renovations can be messy, and you want to have a pristine property to present to potential buyers.
Balance Cost and Quality
While you want to stick to a budget, you need to maintain quality standards through construction and renovation.
Cutting corners or using cheap materials can cause issues and delays or lead to lower resale value. You want to find a balance between staying within budget and designing a living space that is attractive, functional, and durable.
Focus on Curb Appeal
That first impression is powerful when you’re trying to sell a flipped property. Well-maintained exteriors and gorgeous lawns significantly impact perceived value.
It can also invite more potential buyers to stop by and check things out. Make sure the mailbox is sturdy and attractive, and keep debris-like branches out of the yard. Stop by the house for trash day so that the cans don’t stay out at the curb for long.
Learn Marketing Strategies
One of the major points in flipping is a fast sale. The sooner you can sell the property, the less upkeep you have to pay while waiting for a buyer.
Work with a local real estate agent to market the property, and consider hiring a professional real estate photographer— or taking classes and investing in a good camera. Staging techniques and virtual tours help potential buyers access an in-depth preview of the home and envision what it will look like when they move in. You can also showcase the best features.
You will want to price the home competitively while still pulling a profit, so track your expenses and the market throughout the renovation so you can start with a solid price.