3 House Flipping Tips for Better Returns.
With nearly forty years of experience specializing in selling investment properties in Chicago’s southside and westside neighborhoods, we’ve seen and heard it all.
Tip 1: Be Open-Minded; Better Returns Aren’t Cosmetic.
Tip 2: Know your budget
Tip 3: Set A Timeline
Read more about each Tip after properties.
Sin crédito. Mal credito. No hay problema. Nuestros especialistas hispanos le darán un trato directo y no habrá terceros ni intermediarios, la aprobación es inmediata. Casas en venta
No Credit Check Financing Available For Our Live-In, Rent-Out or Fix-n-Flip Properties for Sale in Chicago
Our URB easy no credit check financing continues to give just about anyone the opportunity to purchase a home or investment property. And,since we own the real estate we sell, URB Chicago properties are affordable, processed with minimal paperwork, and there is no need for bank or lender prequalification.
URB casas en venta Chicago y sin ningún papeleo de su parte. Si tienes mal crédito o no tienes crédito para comprar una casa en venta en Chicago con nosotros, no hay problema. Financiamiento sin verificación de crédito.
3 House Flipping Tips.
Be Open-Minded; Better Returns Aren’t Cosmetic.
A cosmetic fix and flip property sounds great when you are talking a little paint touch-up and maybe reframing a door. But, it’s likely you’ll pay top dollar for the property, and limit the property’s appeal, both shrinking your profit margin.
On the surface, some distressed properties may not look pretty, but they can be bought, at least from URB, at below market value and offer renovation options to increase the property’s appeal, both increasing your profit margin.
One recent URB client testimonial really explains this well, when a house buyer wanted to buy a home to rehab in Sauk Village. Her initial thoughts were to buy an as-is condition home as a fix and flip rental property. But, with wide doorways, lower counter space, and even a wheelchair-accessible ramp, we suggested rehabbing the home for the elderly – a relatively untapped rental market in the Chicago Area.
Know your budget
Underestimating the cost to flip a house happens time and again, with even seasoned flippers.
Whether you are going to be using your own money, private lenders, hard money lenders, or URB financing options, figure out the maximum you can pay for the property, which is usually based on the MAO (maximum allowable offer) formula. This formula is where you take 70% of the ARV (after repair value which is the price you can sell the house for after you fix it up) minus the cost of the repairs needed.
Set A Timeline
Set a timeline, not only helps complete a rehab quicker but also makes rehabbing any time of the year possible.
Obviously, the sooner your start rehabbing the sooner you can sell, so don’t let the winter months scare you off, just plan accordingly.
In Chicago, doing exterior work is probably not going to work out well in January or February. So, if you don’t complete exterior work by November you will need to consider options to work on the interior through the winter months.
A timeline to rehab your Chicago distressed home is also important to managing your budget and selling sooner than later.