Any advice you guys can give me on ';flipping'; a house for the first time?

I'm new to the investor world. I just need some do's and don'ts on 'flip house' investing.Any advice you guys can give me on ';flipping'; a house for the first time?
Know your numbers going in...in other words don't expect your profit to come from appreciation only. You have to buy right (yes, that means ';low';) in order to sell at a profit later.





We have rehabbed foreclosed junkers for fun and profit. We ALWAYS took photos of the inside/outside before one piece of trash was moved or one nail was hammered. That allowed us to sell with no problems as the buyers Lender would look at the length of time we owned the property and the amount we paid (versus what it was appraising for after rehab...). The Lenders always approved when they saw the before/after pix.





Go to the local Real Estate Investor meetings and network to find who the right rehab contractors are to work with. Always have a written contract with the rehab contractor(s) and do not advance money unless the contract is fulfilled.





Be aware that any rehab will take longer than the longest projections that you receive so have enough cash/credit in reserve to last until sold or rented.





Best wishes!Any advice you guys can give me on ';flipping'; a house for the first time?
1. Know your market. Intimately.


2. Know your rehab costs. To the penny.


3. Know the building codes. Break the rules at your peril!


4. Be able to do as much as possible yourself, keeping #3 closely in mind. Labor paid to someone else is profit you'll never see.


5. Have trustworthy craftsmen for the parts that you have to sub out.
Plan on the rehab taking twice as long as planned, costing 50% more than you planned and taking twice as long to sell the place once you have finished.





Check out the book 'Flipping Properties' by Bill Bronchick. Also, see his site: www.legalwiz.com





Good Luck
Have a firm idea of what the lowest price is you are willing to accept. Realtors collude with each other and will say anything to bottom it out for the buyer.