July 13, 2016
Although there has been an upsurge in the real estate market, there are still dozens of luxurious houses being foreclosed. These are hot spots for the flippers, who are real estate professionals who will buy the foreclosed house from the bank, renovate it and finally sell it.
In the past year alone, flippers have invested in more than 50,000 luxurious homes alone with each creating an income of averaging $40,000. Well this is a good number compared to middle class homes flipped that bring in a profit of no more than $20,000. The challenge however is that flippers can spend a lot on renovating a luxurious home then get much less profit than expected. To guide you through this, here are some few tips to guide you through the process of flipping a luxurious home.
Flipping a luxury home is an interesting endeavor that is not for the weak. Like all renovation projects there will be set-backs, permits that need re-approval and many other factors. Thus patience is key to this long-term process. Expect to see a return on your money in about a 7 months or maybe even more, depending on how long the house remains on the market.
K. Ann Brizolis, an expert in the Bridges Real Estate, says,
Finding a home to transform into a luxury home is just the beginning. Although finding the perfect home to transform will take time, successfully renovating the home is a whole other chapter that requires patience and a distinct eye to fulfill the potential of the home.
Here are some helpful tips on successfully flipping a home into a luxury real estate home which potential buyers will want to outbid each other for.
Look For Floor Potential
A keen eye for potential is always what makes a good flipper. More so is with luxurious homes. This is because real estate agents always shy away from worn out houses or even homes that look too old to like. In order to successfully flip a luxurious home, one should look for potential in all rooms of the house with the most common being the bedrooms, kitchen, and bathrooms. Envision beyond what the people may see.
Be Quick To Do the Math
It is rather a common behavior for many flippers to concentrate on single family housing units. This is because of the simple fact that they are financially simple to renovate and are always on high demand. Flipping a luxurious home comes with its challenges. It has high profits, yes, but in order to succeed you will need to do financial research first before acquiring the property. Ensure to consider all the dynamics involved in renovating and do a quick math of whether you are going to make a substantial profit or not.
Assemble a Team of Professionals
It is not possible for successful flippers to work alone. They will require other experts in different fields like plumbers and electricians to carry out the technical jobs. There are some structural elements that do not require you to add an expert in your team. You can hire professionals to check sewers if they are blocked rather than maintaining them on a payroll. For luxury home flipping, its important to have experts like agents w2ho will give you information on which homes have been foreclosed so that you can be the first one to bid.
Consider the Buyer When Renovating
When renovating a luxurious home for re-sell, it’s important to keep the client in mind. It’s totally different from renovating your own home. High end homes require ample, expensive and glamorous fittings and other aspects. The paint for example should not be too bright rather it should be conservative. Also, you should consider the minute details of each fitting you are going to renovate. The door for example should not squeak or slam when closed. Ideally, you should do in-depth research on what luxury home buyers in the area want like the style of swimming pool, wine cellar, wall mounted TV and other aspects to make the home stand out and sell quickly.
What have your experiences been like when flipping homes? What was your most memorable flipped home? Share in the comments section!