Turn on any DIY network on your television and sooner or later, you’re bound to come across a show that makes it look easy to fix and flip houses for a profit. Let’s be realistic, though. These shows don’t let you see the hours and hours the people involved really spend on their project. Neither do they record the proprietary tricks and secrets these house flippers use to complete their house flip as quickly and inexpensively as possible? However, if you’re absolutely sure this is a career you want to try, prepare yourself with both knowledge and skill.
I Got Skills, They’re Multiplying
No matter what you think you know about home renovation and construction, there’s always more to learn. Having apprenticed to a carpenter one summer while you were in high school is helpful, but certainly not enough. Watch those shows again. You need to know the skills of or be able to hire masons, plumbers, electricians, carpenters, roofers, tilers, landscapers, and more. These aren’t fly-by-night jobs, either. These are all skilled labor positions that take years of apprenticeship and study to be able to master. If you can’t do all these things yourself, you’ll need to hire competent help in order to meet building codes.
Knowledge Is Power
About those building codes, do you know what they are and how to meet them? How to apply for the licenses you’ll need to get approval for your project? How about financing? Do you know how you’re going to pay to buy the home you’re flipping and all the building supplies and equipment you’ll need for your flip? How about your own needs, can you feed and shelter yourself during this project? Will you be able to pay your own bills while you wait to make a profit on your flip until that house sells? What if it doesn’t sell right away? Are you prepared to have your capital tied up for a while? Will you be able to hire the professionals you need to get the job done right?
There are certainly a lot more questions that you need to answer. These will all be part of your business plan because this is a business for you. Your business plan will not only help you answer all these questions, it will help you get financing if you need it. Build extra time and a little extra money into your budget, too, so you have a contingency in place for unexpected and unwelcome surprises.
Flipping a house may look like fun on TV, but with a solid business plan, you can turn it into a money-making opportunity.