New Jersey Home Flipping
Create a list of actionable items that outlines the process of home flipping specifically in New Jersey.
Phase 1: Pre-Purchase
- The first step to flipping a house is to do market research to identify the area to purchase the house in. Key considerations here are the average type of properties and prices and the type of buyer.
- The second step it to create a budget, business plan and to begin arranging for financing. Additionally, one should also begin networking to identify a real estate agent, home inspectors and contractors to do the renovations.
- The third step is to begin identifying houses to buy. There are many strategies for this including working with a real estate agent to find listed properties, working with wholesalers to identify foreclosed and/or unlisted properties, or creating a direct marketing campaign to appeal to potential buyers directly.
Phase 2: Purchase and Renovation
- The fourth step in the process is to actually purchase a house to flip. The house should be for sale for below-market value, and have the potential for wide enough margins to cover all costs involved. Then work with a licensed real estate agent to make an offer, have the home inspector complete a home inspection, and begin working with contractors to create quotes for the renovations.
- The fifth step is the renovation, which should begin on closing day or the day after. The most important things in this phase are to stay on schedule and within budget.
Phase 3: Sale
- Lastly, once all renovations are finished, it is time to sell the house. The key in this stage is to properly price the house in order to cover costs but also move the property quickly.
Proposed next steps:
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