There is no question there is money to be made in flipping homes. But, not all flips are successful. So, if you want to flip a property in Naples , Florida here are five of the many things that you need to know or consider if you are thinking about investing in a real estate “flip”.
1.) You need to be knowledgeable about the property values in the neighborhood – both before any renovation (when you are buying the property) and after you have invested in improvements (when you are selling the property). Where are you getting your information about recent closed sales? Is your source reliable and accurate? The internet is not going to give you the depth of information necessary to make intelligent decisions and avoid costly mistakes. This is where you will benefit the most from an experienced Realtor who can negotiate the right price for a flip and be with you all the way to the sale.
2.) Deciding on which work will need to be done. Which upgrades will bring the most return? What are the buyers looking for? What are the trends in the market? What are the trends in the neighborhood? A flip does not mean you will replace/upgrade every feature in the home. Remember you are taking an ugly home, neglected or dated and creating an attractive and inviting home to buyers. So you will need to decide which features to invest your $$$ in.
3.) You will need a very detailed budget with estimates for work to be done. Where are you getting these numbers? Are you hoping to hire a general contractor to oversee the project or do it yourself?
4.) The team you choose for the project will be an extremely important factor in your success. The Realtor you choose, should be one that works regularly with investors and is knowledgable about the neighborhood where you plan to do the flip. The contractor you use will have to be one that can deliver on time. The pool company (if you are adding a pool) etc. Again an experienced agent can help you put the right team together.
5.) What do you know about the 50 per cent rule in Collier County? Are you familiar with FEMA regulations and how the 50% rule affects a renovation? This is vitally important in choosing the right house. Any mistakes here and you could be in trouble before you ever begin.
Call Elllie at (239) 776-5077 or Tim at (239) 272-4848 to talk to an expert now. We have successfully provided professional guidance to many investor clients and we want to be part of your next successful FLIP!