The Bay Area is home to a hot housing market. Take this opportunity to earn an income flipping homes. While it can be difficult to break into the market and flip your first home, find out the basic steps to getting started with a team of professionals, accurate projects and hard money loans California.
Work With a Team of Professionals
It takes a team to flip a home. While you may be dreaming of purchasing, renovating and selling your home on your own, this isn’t a practical reality in the busy Bay Area. Make the most of your investment by working with a professional realtor, contractor and lender.
A realtor can give you access to the latest listings and must-have real estate. The best properties in the Bay Area go quickly, so you need a professional on your side to help you negotiate contracts and keep an eye on the newest listings.
A reliable contractor is essential for safe and legal renovations. While you may want to get your hands dirty cleaning and preparing your property to flip, you’ll need professional assistance to repair plumbing, electrical and drywall features in your property. Explore the benefits of having a solid financial projection and timeline to see why it pays to work with a reliable lender.
Discuss your plan with your team to be sure everyone is on the same page. Let your realtor know that you’re planning to quickly sell this investment property to negotiate a deal as both buying and selling agent.
Estimate Your Financial Needs
One of the major pitfalls of flipping homes is creating an accurate budget. Many first-time flippers underestimate the costs and overestimate the value of their newly flipped homes. This can lead to financial issues unless you have flexible funding. Look for affordable hard money loans San Francisco to ensure you have the financing you need to cover any unexpected expenses.
Don’t just set aside enough financing to purchase a home, but be sure you have the flexible funding necessary to pay contractors for any renovations. A key part of flipping a home is improving it, and these improvements may not be covered by your mortgage. A hard money loan offers you the versatile working capital you need to hire quality contractors and invest in stunning interior designs.
Set a Project Deadline
A fast flip is typically a profitable one. Discuss your project with your contractor and realtor to determine a reasonable deadline for your flip. From start to finish, be sure you have plenty of time to make any necessary renovations and sell your property before your loan requires full repayment.
Choose a Flexible Financing Option
Compare leading hard money lenders in the Bay Area to find out how you can afford to flip real estate. Properties in the area can be more costly than other areas, so you need reliable financing and a solid plan in order to make the most of your investment. Contact a local lender today to discuss your idea and see how you can use a hard money loan.