Easy Remodeling Primer for Flipping Real Estate

If you've ever considered flipping real estate to make some extra income, only to be dissuaded at the prospect of having to self-manage a sizable remodel on a particular piece of property, you're not alone. In fact, many people, though excited at the thought of buying, renovating, and selling an old fixer-upper, think they either don't have the time, and/or the necessary knowledge to even consider such an undertaking.

The reality, however, is that anyone, even a first-timer, can manage a small-to-medium-sized renovation with some thoughtful pre-planning, and a hands-on approach to monitoring your project. I'm not suggesting that you can just step right into a general contractor's shoes and do something that he/she does on a daily basis. What I am saying, however, is that you can manage a successful remodel by simply giving some forethought as to what exactly you want to accomplish, how much it will cost (assuming you have solid estimates from reliable sub-contractors), and if you are able to make a profit once the house is sold. A solid relationship with your chosen subs is always a good thing too.

Again, if you're new to house flipping, and are considering a flip with extensive, whole-house renovation, then yes, you should probably keep looking for an easier project to do (in terms of potential remodeling) instead of taking on a larger project right out of the gate. If, however, you do decide to move forward, consider some of the more important aspects of a major rehab with the following remodeling primer to help you form a working budget, and to provide a doable timetable to execute your remodeling project.

You will be talking with people in the industry such as:

Architects and/or Draftsman
To do any necessary drawings or renderings for your particular remodeling project

Building Inspector
If you are removing and/or erecting interior walls, you will most likely have to obtain a building permit from your local community building permit/code enforcement division

Sub-Contractors/Tradesman
Trades such as demolition, mechanical contractors (HVAC, electricians, plumbing), insulation installation, drywall installers, painters, trim carpenters, cabinet/counter top installers, tile installers (if needed), flooring professionals, roofers, exterior siding, concrete specialists, and landscapers.

Determine what exactly it is you want to do with the house in terms of remodeling. See where improvements/updates can be made for the least amount of time and money. You certainly want to present a professional-looking remodeling job to prospective homeowners so that they feel they are getting their money's worth.

But first things first. If you have a simple remodel where you are freshening up the carpet and paint, along with a few odd and end type things, you're more than likely able to handle that without too many problems. But, if you're looking at a complete kitchen and bath upgrade, for example, you will need to be aware of the need to deal with an entirely new set of sub contractors and professionals that suddenly makes the project a little bigger. Certainly doable, but just broader in scope.

The time to develop a working budget, is after you have received all of the pricing back from any of the subs you want to work with. Get at least two prices per trade, if you can. You can get leads on various sub- contractor trades from the phone directory, internet, or the many local hardware, paint, or home-improvement stores around your town. Many good, honest tradesman advertise with these businesses, so you should have more than enough to choose from.

There will be some personal time involved just getting prices together, meeting subs at the job site, etc., but you want to be as efficient with your time and money as you can be. Once you have a firm budget in place, get with the sub-contractors you've chosen, and set a doable project timetable. Don't be shy about asking a lot of questions. After all, it is you're money on the line, and you want the project to be done in the best way possible.

Tell your subs that you want to keep an open line of communication going so there won't be any surprises and confusion. And lastly, always account for some sort of cost add-ons that typically occur in any remodel. Usually about 3 - 5% of total remodel cost will do for any overages.

If you're relatively new or considering entering the house flipping business for the first time, please visit http://www.House-Flipping-Helper.com for more information regarding all things house flipping and remodeling.