Quickly flipping real estate is a necessary skill if you want to be a strong investor. Knowing how to quickly turn a house is crucial. In our latest post, we provide some excellent tips for quickly flipping real estate in the Chicago area.
As a Chicago investor, you know you are losing money for every day you own the property. The costs of owning a home can eat away at any potential profits much faster than people realize. Monthly utility costs, homeowners insurance, property tax, maintenance, and the mortgage payment will add up quickly. Whether you are flipping a property or you need to sell a house you have owned awhile, selling quickly will help you to keep more cash in your pocket. Below, you will find some information on how to sell your property quickly in the Chicago area.
Avoid Major Renovations
As an investor in Chicago, you will likely not be purchasing houses with major structural damage when looking to flip. Hopefully, most of your fixes are cosmetic in nature and can be quickly fixed, or left to the new buyer. Tackling large renovation projects is a big no-no for those who want to flip the house quickly. Stick to smaller projects that will boost the home’s value such as a new coat of paint, new fixtures, or crown molding. Don’t get in too deep by redoing the kitchen, knocking down walls, renovating the entire bath. Doing these sorts of projects can open the floodgates to other repair needs while also delaying your selling timeline. Major repairs typically end up costing more than originally planned and can be more trouble than they are worth.
Sell To A Professional Buyer
A professional buyer such as Chicago Home Buyers, will be able to buy your house right away, without having to deal with the red-tape of a traditional sale. We won’t subject you to an appraisal, or make you wait while we secure financing. We have the funds available to buy your house right away, helping you to flip the house quickly, using the cash to reinvest as you so choose.
Have A Strong Team
Before going into any renovation project, you will want to have your team ready to go. This means already having your contractors picked out, timelines determined and the numbers to back everything up. As you invest in more and more properties, you will develop your own team of professionals including title professionals, contractors, designers, agents, wholesalers, legal professionals, an accountant, and other investors. Having talented and smart people on your team will help you execute your deals faster and with more precision. Join local investment groups to network with other like-minded professionals. Many of the best deals are done through networking.
Know When To Hire A Pro
Many property flippers will assume that they will be able to do it all themselves. While you might have a strong construction background, you should also not be afraid to call in a professional when you need it. If you are redoing a bathroom, for example, consult a plumber to help, while you handle the framing, etc. Only use licensed and insured contractors on any project you are completing. By sacrificing on quality, you are setting yourself up for lawsuits or further damage down the road.
Avoiding Emotional Attachment
Flipping real estate in Chicago is a numbers game plain and simple. This is not a property you are keeping for the long term, so don’t fall in love with the house. Make upgrades to increase the value, but don’t spend an irrational amount of money picking out fixtures, countertops, or other cosmetic items. By incorporating your taste too much, you could even turn some buyers off to the house. Stick with neutral tones, simple, yet classy fixtures, and keep your costs low whenever possible.
Know How To Sell The Neighborhood
If you live in the area, you will already know a good deal about the neighborhood and local market. However, if you aren’t exactly a local, learning about the neighborhood perks will help you in selling the house. Hype up popular restaurants in the area, the good schools, the ease of transportation, and future growth plans. Learning about these sorts of things may persuade a buyer to buy, even if they weren’t blown away by the current look of the house.
Plan For The Unexpected
When doing repair work to a house, you will likely discover additional things you want to fix. Set aside some of your budget for the surprise costs that will inevitably show up. You should also have a backup plan in place in case the house doesn’t sell as quickly as you need it to. For example, getting a short-term renter in there to reduce your ownership costs until the market picks back up.
Whether you are looking to buy or sell an investment property in the Chicago area, Chicago Home Buyers can help by either purchasing an unwanted property or selling you a house at a price that makes sense. Just like you, we are investors who only deal with the best properties and deals. We would love to work together!