How to Flip a House (Part 2)
This is the second in a two part post about flipping houses, featuring expert home flipper (and Windermere Professional Partners Realtor) Jeff Williams of South Sound Property Group. To view the original post, visit How to Flip a House (Part 1).
Jeff has flipped more than 38 houses since he started in 1993 and his properties have been featured in South Sound Magazine. Jeff Williams has been flipping houses since the 90’s, and he has learned a lot over the years through trial and error. One of the biggest mistakes first timers make is being overly optimistic about how easy the project will be. “They watch HGTV and think they can buy a fixer, sponge paint some cabinets, put in new carpet from Home Depot and make money,” says Jeff. “Just because a house is a fixer does not mean it’s a flip!”
When you’re flipping houses in a market with prices going up every day, you can sometimes get away with mistakes. While the current Pierce County Housing Market seems to be bottoming out, the current pricing conditions mean that flippers need to be paying close attention to their numbers.
It’s not just the price you pay for the house and the the price you can sell the house for, it is what it is going to take to whip the house into selling shape. “The key to it all is don’t start flipping houses under-capitalized,” says Jeff. “It’s a high risk high reward game and being too tight on cash is most people’s downfall. The worst thing in the world is to be forced into making decisions based on cash flow versus profitability.”
If you’re looking for the right real estate agent to guide you through your first flip, you can contact Jeff Williams here.