You’ve watched virtually every house flipping show on television, and by this point you’re a “pro” at home renovations. You’re finally ready to put your knack for redesign to the test.
Now, you’ve purchased a first fixer upper of your own, and you’re going to house flip your new property. Before you reach for the sledgehammer on demo day, consult our house-flipping checklist:
- Acquire the title to the property. This isn’t always cut and dry as the seller might not be the original owner and doesn’t always have rights to sell the property to you.
- Refer to the property profile of the home. This record will inform you on the property’s owners of record, lot size, description, debts and more.
- Apply for title Insurance. A title insurance policy can protect you and your lender from liens, mortgages, forgeries in wills or other instances that could conflict ownership. There can be restrictions on the property as imposed by the title that might not be clear until after purchase. Almost every property will require title insurance involving a mortgage lender.
- Gather up your team: An accountant, home inspector, insurance agent, lawyer, real estate agent, surveyor and a title company. This project will undoubtedly be a massive undertaking, and you can’t do it alone, and you shouldn’t have to.
- Put in the time. You should be prepared to visit the property at least five times per month to oversee the timeline and keep projects running as they should.
- Watch the market. You’ll want to keep in mind the current sales price and market value of similar homes in the neighborhood. Are they selling fast?
- Expect the unexpected. How many times have you seen your favorite house flippers tap into that contingency fund they swore they wouldn’t touch? You might have to, too.
This is a lot to take in, and we want to still encourage you to make that offer, plan that budget, renovate that property and flip that house. At Monarch Title Company, Inc. we will be here every step of the way to help keep you on track.