While flipping is a great way to make a quick profit, this endeavor requires realistic expectations and well-laid-out plans for every step of the process in advance. All too often, wide-eyed first-time buyers entering the fix and flip market are excited by television shows that make the process appear quick and easy.
While it is not always easy to reach out for advice, jumping into the property flipping pool without knowing the financial depth or the amount of work involved and having a firm grip on the timeline is foolhardy. Follow these five tips for a successful property flip in Chicago.
Do your research to make sure you have checked off everything on the list that makes for a successful property flip in Chicago. In case you haven’t heard, the most critical factor in real estate value is location. If the Chicago real estate market is not as familiar to you as the back of your hand, you should work with a trusted and experienced investor like the experts at Chicago Home Buyers who know the market. You want to find the best property within your budget because happening upon a cheap house is not the same as locating a good deal. From the initial inspection of the property to reliable estimates of time and cost for repairs, it is essential to your success to practice due diligence as a routine part of your business before you ever close on the deal.
The Theory of Staging in Design
Understanding the factors that influence buyers in the Chicago real estate market has grown, staging for interior features and design has become an intricate part of successful property sales. It is no different when you are involved in a property flip in Chicago. Your first venture into flipping is not the time to express yourself creatively. While you may favor purple, you want the space to be neutral to allow prospective buyers a blank canvas to imagine themselves occupying the home. Personalized items and decor tend to make a claim on a property and devalue it in the eyes of buyers, much like a noticeably used and returned item sitting on a store shelf, sensing previous ownership makes us less likely to want to pick it up or own something.
Sticking a sign out in the yard is essential, but it is no longer enough. Devise a marketing plan that meets the demands of today’s buyers for a successful property flip in Chicago. Technological changes to how buyers locate properties mean you have to have your listing in all the right places online. As buyers scroll through listings, you must capture their immediate attention with your photos. Consider professional staging with furniture and decor to enhance the property. Your marketing plan should include professional photography and the 360-degree virtual tours provided by drone pilots, allowing buyers worldwide to view your property as if they were there.
Do the Math
What you pay for the property is the determining factor in realizing the highest return. You have to do the math properly for a successful property flip in Chicago. Paying the right price for your investments means you cannot leave anything out of the data and that your estimates must be on target. Remember too that you must have reserves for whatever can go wrong. Any errors during this step of purchasing an investment would come off of the profits you are anticipating and could end up being a loss if you did not use reliable methods to calculate your numbers. Getting a feeling about a property or making decisions based on emotions about the current market value do not factor into any of the formulas successful investors use to calculate the profitability of a property.
Strong Support Team
Have a strong support team in place before you buy for a successful property flip in Chicago. When you add up all the numbers to flip an investment property, it all boils down to teamwork to achieve success. The weakest link equates to the strength of a chain, and when you are investing in flipping a property, learning that you have a problem after the fact can cost you valuable time and lead you to financial disaster. Working with a professional buyer, like those at Chicago Home Buyers, will help you avoid costly mistakes. An experienced professional will take the time to listen and help you map out a plan to suit your needs.
At Chicago Home Buyers, we make it easy to fulfill your goals! Chicago Home Buyers has the best deals on investment properties available right now! Ask about our inventory list! Because of networking, Chicago Home Buyers has an entire team of professionals ready to go, from the initial inspection to a successful property flip in Chicago! Your success is our success at Chicago Home Buyers. Send us a message or call Chicago Home Buyers at (312) 300-2043.