3 Secrets to a successful house flip
House flipping can be a great source of income – if you plan ahead. Consider our three secrets to a successful flip.
House flipping – the act of selling a house within a year of buying it – is at an 11-year high in the United States; a slew of popular television shows make it look easy and lucrative. A recent report from NPR explains just how popular flipping was in 2008, and how it is growing again today.
Land is readily available at reasonable prices. Your trusted realtor can help you find local opportunities. And both the City of Chicago and Cook County are looking to deal on vacant lots they own and want to see redeveloped.
Review everything carefully before you buy
The most successful flippers pay attention to the details; None is too small to make a big difference in your budget.
A good realtor will pick out the details on site. Things like overheard power lines, busy streets and views of a water tower may affect your plans for a quick sale.
Your team is there to help you be successful
Keep a similarly close eye on the associated documents you collect. Work with your property team and consider our three secrets to a successful flip:
- Make sure your contractor is licensed, bonded and insured – and approved to work in the municipality.
- Review the property tax bill carefully when you are budgeting for your flip. Look to see if the seller took advantage of a senior freeze or other tax exemptions that could expire before your project is completed. This could throw your budget off track.
- Consider if this is a one-time project or if you see additional flips in your future. Your answer will determine if you would be best served by setting up a corporation or other business entity for the protection and tax incentives they offer.
Before you buy a property to flip, contact your North Shore Property Law attorney to discuss these and other details that affect your success.