Blowing up houses looks glamorous and easy on TV. Many people are tempted into the business, lured by the promise of easy money and high volume. But what does selling houses profitably really mean? We take a look.

What do you need to be ready? You need an excellent credit score. You need cash, because you’re typically investing in a high-risk property and need a larger down payment, or you’re buying outright, free and clear, at auction. Another option would be a 203(k) loan, but that’s another article. You need to know the real estate market. The most important thing is that you need to know the houses. Just like a good auto mechanic looking to spend the bare minimum on a top repair, you need to know how deep the money pit is.

What to look for in a house to flip:

Rent. Find a house in a desirable neighborhood or in a city where people want to live.

Sound condition. You don’t want to start rebuilding it from scratch. Look for houses that have a good solid structure.

Good Schools. Homes that are in good school districts tend to sell faster.

The correct corrections. A home that has mold, needs a roof replacement, or needs new wiring takes a lot of time and money to upgrade and sell. Experts advise that you add 20% to the final estimate of the repair because it will always cost more than you think.

Nearby. Do not invest in a house far from where you live because you will spend too much on gas and it will take longer to fix the house.

Focus on the kitchen. The kitchen is the most important room in the house. Focus on remodeling the kitchen, then consider a bathroom redesign. Analyze how much you will have to spend in the kitchen so that the whole house is a sale.

Worth. Make sure the home is priced below its value on the local market. Don’t buy from a photo or foreclosure agent online. Always research a property in person before buying.

Here are more ways to avoid getting burned:

find out

Don’t speculate on up-and-coming neighborhoods. Remember, you want this house to sell fast. Become an expert in home financing options. Learn to negotiate effectively. Know how to spot a good deal. Start building a network of contractors you trust, including plumbers, electricians, painters, and landscapers.

Learn which home improvements increase home value, and focus on these improvements first.

find a mentor

If you know someone who has had success flipping houses, ask them to be your mentor and offer to partake in the deal. It’s an offer they can’t refuse; and you only need to do it for your first house.

Investigative Listings and Foreclosures

Many websites offer foreclosure listings. Check a home’s background with BuildFax, which provides a comprehensive background check on a home, including repairs, remodels, and additions.

make an offer

Once you find a house you like, you make an offer on the house. Decide the method of purchase. A 203(K) home loan is a good option to consider. Before you make an offer, make sure you know how much you can pay for a house and still make a profit. If the homeowner or bank won’t sell to you for this price, walk away. Don’t be ruined by a bad investment.

Start to work

You need permits before you start remodeling, preferably immediately after the sale. This helps you and your contractors complete renovations quickly and on budget without incurring penalties or delays.

publish and sell

Go with a real estate agent. They are worth the money. If you choose to sell your house yourself, you will end up waiting a long time for the house to sell; and showing a house consumes your time.

In conclusion

Changing houses offers great risks, but it comes with great rewards. A home flipper must be prepared so that the house is not sold immediately. House lovers have to decide whether to accept offers that are less than what they wanted and still make a profit. If you can handle the stress of it all, then moving might be right for you. Remember, luck is where opportunity meets preparation.