Many investors in the real estate sector have turned into house flippers. It has proven to be a lucrative venture for all parties that take part in it. Hence, many prospective investors are incentivized to venture into the business of flipping property owing to the better fortunes that it promises.
The Spouses Flipping Property podcast provides a comprehensive highlight of what the business entails plus much more. The hosts are Doug and Andrea Van Soest.
Flip Property- Find a Deal, Ask Questions Later
In episode 36 of the podcast, the couple talked about the questions that their close friend David had concerning the flipping property. They thought that the many questions he had were representative of what many investors had. They went on to advise people that, in the event that they got a deal to flip the property, they had to go for the deal first. They encourage investors to make an offer even if they have questions about the deal. They recommend investors to seek legal and professional advice later as the deal is progressing.
They go on to recommend people to get a title policy and a title insurance. The fee is usually paid one-time and is based on the purchase price. They give a guarantee to the investor as far as having a clear title is concerned. As a buyer, if you intend to resell the house, it is advised to get a title binder policy which is usually 10% of the value of the property. It is usually taken on a 2-3 year period. As the investor, you typically are required to provide insurance for the next owner of the house.
Therefore, if you are going to flip property, you are best placed when you have a title insurance as it’s going to save you money.
Flip Property-Rental Property
In episode 37, they discussed why every house flipper should include rentals as part of their portfolio. The reasons are as follows:
- Flipping a property can pay you one-time but flipping rental properties can pay you for a lifetime. For as long as you own the property, you will always earn from it.
- The real estate market appreciates over time. Therefore, you gain from the appreciated value of the property given the aspect of time.
- You can use leverage to acquire these properties. You can actually use borrowed money to acquire a rental property. However, a word of caution is to refrain from over-leveraging.
- Your tenants will pay off your mortgage.
- It also provides huge tax benefits as you only get short term capital gains tax. You can also get to write off an insurance or the interest on a mortgage among other numerous benefits.
Flip Property – Value Addition
For you to flip property, you need to add value. In episode 38, the couple talked about 6 creative ways in which one can add value to a property that others may not be able to see. For the 6 ways, listen in to the podcast to get more insight to what they recommend.
Indeed, this podcast has some timely advice on how to flip property among other tips for the real estate sector.