4 minute read

glo Gal’s Shopping Guide

from Fort Wayne's Glo August 2021

by The Papers Inc.

from Fort Wayne's Glo August 2021, page 8

Article from: Fort Wayne's Glo August 2021

Self Care + Beauty: Smoothing ...

Flip a House

By Deborah C. Gerbers

Flipping a house is not as easy as it looks on TV — there are many details that need to be considered before making an investment.

Turning over a house with proper improvements can be more of a commitment than most people anticipate. But by understanding local regulations, being conscious of costs, and working with local professionals, you can make a successful investment in the end. According to real estate experts at forbes.com, there are several steps you should take before choosing an investment property and beginning your project to get the best possible and most equitable outcome:

Understand the local market and guidelines before purchase.

To execute a successful real estate investment, it is important to educate yourself on local rules and regulations. Be aware of government regulations, neighborhood codes and other factors that will affect the costs, price and total investment. In Allen County, unless you plan to live in the home you’ve purchased for renovation, you will need to obtain proper licensing for subcontractors, plumbing, HVAC, framing, roofing and other aspects.

Know the neighborhood and be selective.

Be sure you know everything you can about a specific neighborhood before buying an investment property there. If you overdo a home in a not-so-great area, you won’t get as much money as you had hoped for; on the other side of the coin, if your investment house does not add up to neighboring values, you’ll have the opposite problem. Is the area up and coming or well-established? Ask yourself these questions first.

Choose a project that can be done well but in a timely manner.

In real estate, time is money. If there is too much work to be done on a house that requires more work than you can handle, don’t do it. Know your limits and make sure you have the right experts, contractors, and builders available.

Make the right fixes and improvements.

According to Fort Wayne real estate broker and investor Kevin Gerbers, it is imperative to make the correct improvements on investment properties.

“When I began working on investments twenty years ago, I was told all homes need are a little carpet and paint,” he said. “That is absolutely untrue; there are so many unexpected details that factor into a successful investment.”

Work with real estate professionals.

If you’re new to flipping, try to network with other potential buyers. Building relationships with prospective buyers and investors in the area can help you in the long run. Educating yourself on the local market, profit margins and neighborhood values are critical to being a successful investor.

Be prepared for unexpected costs and extra work.

Gerbers advised potential real estate investors to anticipate unforeseen problems and to be prepared for annoyances as they arise.

“Many people don’t realize they need to address the foundation of a home or the stability of framework and roofing,” he said. “You also need to be aware of your margin in your initial investment so that you can make money, but also leave yourself enough wiggle room to cover unexpected problems like foundation cracks, leaking roofs, and other issues.”

Another thing people don’t take into account are the other necessary costs when taking on an investment project; costs that are not typically outlined on home improvement shows on television.

“There are closing costs on both ends, real estate commissions, prorated taxes, inspections, utilities, bank interests, and other factors,” said Gerbers. “You can easily miss your budget by a mile because all those costs can sneak up if you’re not well educated and prepared.”