What’s the point of a fix and flip house project if you’re not going to get back everything you invested in it and more? After all, flipping a house the right involves not just the initial hard money loan financial investment but your own time, physical effort and even various other expenditures along the way. Fortunately, there are various measures you can take to make sure that none of this ends up being a waste of time.
Here are some fairly simple tips you can follow during the selling process to make sure that you are maximizing your return on investment:
Seize the Advantages a Hard Money Loan Has to Offer
By utilizing a hard money loan in lieu of a traditional mortgage or other bank investment, you actually have multiple advantages that other financial avenues may not offer. For example, hard money loans offer both conveniently fast approvals and flexible terms. This means you can get started on your fix and flip project much faster and can use the time that you need to make sure the project gets done right. And because the collateral for the loan is usually the property itself, you have the convenience of not having to make constant payments to a bank or having to come up with other assets.
Take Some Great Photos or Hire a Professional Photographer
Think about how you’re going to draw in prospective buyers. These days, people often browse through dozens– if not hundreds– of real estate listings online before they finally narrow down a list of houses they would like to see in person. It is therefore important to not just write up a great listing that can be posted on various high-traffic real estate sites, but also to post some appealing photos.
If you have a high quality camera and have an eye for great lighting and space, you may be able to take professional-looking photos yourself. If not, you may want to consider hiring a professional photographer to come do the job for you. After all, the photos are arguably the most important part of any real estate listing, and a great one can be the difference between prospective buyers clicking to see more and scrolling on past.
Stage the House for Showings
Selling the house is the very last stage of a fix and flip project. So why stop putting in effort now? Stage the house to make it look like a home, not just a project. You don’t need to go filling it up with furniture and hanging pictures, but putting in at least some home items will help. After all, people are better able to envision themselves living in a place if they see some furnishings already in place.
To keep costs low, consider picking up some nice-but-cheap furniture from Goodwill (always make sure it is clean before putting it inside the house). If you won’t miss it during the showing process, you can also borrow some furniture from your own home.
That said, you might also want to consider enlisting the help of a professional staging company if you really want to go the extra mile. Often used by realtors, these companies require minimal effort on your part and will stage the house for you to make it look like a real attractive home. When a house is staged right, you are more likely to get a higher selling price.
Consider Hiring a Professional Real Estate Agent
Let’s be real– you’ve already put in a lot of effort on your own by this point, and if you’re like many people you probably want to see your fix and flip project right on through to the very end. While it is certainly possible to sell the property all on your own, the truth is that you are far more likely to attract buyers (more specifically, high-spending buyers) if you enlist the help of a professional real estate agent. They can get your listing on high-traffic websites more easily and can use their industry connections to get the word out to local realtors working directing with buyers.
While you will have to pay a fee to a realtor, the truth is that using one is the best way to bring in as much revenue as possible.