How To Start Flipping House For Fast Real Estate Profit In Nigeria
Nigeria Real Estate recently started coming into a vast limelight not long ago. And many people who understands the income generating power of real estate are investing massively into it already.
Flipping business is one of the most advantageous and massive income generating business in Real Estate World.
Anyone who can go into it without minding the little efforts it takes will of a surety get a second income idea and probably if done very well become an overnight offline and online millionaire right here in Nigeria.
What is flipping?
Flipping is the act of buying, renovating and selling properties, mostly houses.
A flipper is a person who tries to buy, rehabilitate, and sell real estate properties, (land, homes etc) for a quick profit. Flipping in real estate is the ability to take possession of a valuable, yet often neglected property (house, landed properties, cars etc.) with the sole aim of renovating or repairing it for sale within a short while.
This beautiful story credited to KIRSTEN KEMP in her book titled "Flipping Confidential; the secrets of renovating properties for profit in any market" is a complete and concise summary of everything you need to know about property flipping business.
Have a good read:
I have some good news for you. There’s an art and a science to flipping houses, and it doesn’t take an engineering degree and a bottomless trust fund to do it. Several years ago, I had a real estate client, Lety, who purchased her first condo in Santa Barbara for $200,000, 110 percent of which was borrowed. Because she had no money whatsoever, she even had to borrow the cash to cover her closing costs. Lety was a single mom who desperately wanted to provide security for her young son. Although she didn’t have a penny to her name, she was employed full-time as a hairdresser and had a loyal, steady clientele. She possessed an inspirational resolve and an innate understanding that the key to financial independence was to invest in real estate even though, technically, she had nothing to invest.
Because Lety’s funds to get into her home didn’t come out of pocket, her mortgage payment was steep. Lety made many sacrifices to keep that condo, but she never complained because she had her eye on the prize: building equity and, hence, financial stability for her future, for her son. While she was living there, Lety made some minor cosmetic changes to her condo replaced linoleum with tile, painted, and changed out some light fixtures and hardware. Two years later, she sold it for $298,000, a healthy profit in any market. She dropped $325,000 on her next condo, made similar improvements (and sacrifices to keep it), and sold it 18 months later for $435,000. With the equity she had acquired, Lety partnered with her sister and bought a house for $950,000, completely overhauled it, and sold it 16 months later for $1,175,000. They split their profits, and Lety purchased a single-family residence in need of her now well-honed special touch. There was a nice yard for her and her son, and she is now enjoying the comforts of well-deserved stability.
Think about this scenario. Here’s a single mom with no money and limited skills. Lety struggled to get into a $200,000 condo, and just five years later, she was dabbling in million-dollar deals. Did she set out to become a “flipper?” Probably not. Was it easy? No. Scary at times? No doubt. Worth the sacrifice? Absolutely.
Lety didn’t have experience or cash, but she did have what it takes to be a successful flipper: a principled conscience, an iron gut, a keen sense of organization, a passion for the process, a healthy dose of reality, and a finely honed sense of humor. That last bit is key. Take it from me, someone who’s lost (and made) more money in 12 years than some people see in a lifetime because there is no better backdrop for raucous laughter than a construction site under a self-imposed time crunch. Of course, how long and how heartily you chuckle (and how quickly you recover) will depend on your mind-set, attitude, and perspective all of which we’ll be sure to get in the right place before you begin your flipping journey. Source: Flipping Confidential; the secrets of renovating properties for profit in any market.
One of the rising stars when it comes to real estate investment is known as 'flipping' properties. This works by buying properties that are in need of either minor repairs or in need of serious renovations, doing the work, and selling the home for a much greater price. In theory this brings in a significant amount of profit in a rather small amount of time. This is the case for many who attempt to flip properties but it takes a little more than the idea in order to make the process work. For this reason, there are many who end up sacrificing profit or losing money in the process when plans aren't well conceived.
If you are considering a future in real estate investing, this is one of the quickest ways in which investors can turn a profit. It is also a method for bringing in high profit in a short amount of time. Unfortunately, this once closely guarded secret has gained some degree of infamy and there is fierce competition for the undervalued properties on the market as more and more would be investors decide to throw their hats into the collective ring.
SO IF YOU ARE INTERESTED IN INVESTING INTO THE REAL ESTATE FLIPPING BUSINESS IN NIGERIA, THE FOLLOWING ARE THE FOUR IMPORTANT THINGS YOU SHOULD PUT INTO MIND.
FINDING
The very first step you must take in flipping process is in finding ( where and how you can find it has been written above) the best property with an investment potential: This you do by considering many factors such as: Location (the kind of neighborhood, an increasing neighborhood or a deserted one, Fix-ability, is it a house that is worth spending on for renovations/repairing, is the owner willing to sell the house for the right ad prevailing market value.
ANALYSE
The next stage after finding the right investment plausible property is to make analysis based on cost of acquiring, fixing and selling. In our opinion, the Analyze stage is the most important part of the investment process. This is where careful investors make their money and risk takers often lose theirs. This part of the book is devoted to teaching you how to make smart offers, specifically, how to perform the analysis and count the costs to determine your maximum offer: the absolute most you can pay for a property and still realize a solid profit. Knowing your maximum offer gives you the ability to stay objective during the buying process. You will be able to present your offer with confidence, keep your emotions in check, and walk away from an unprofitable or risky deal without regrets.
BUYING
There are three steps to our process for buying an investment house, and each one requires preparation so that you can respond quickly. The first step is figuring out how you’re going to pay for the flip. Whether you’re borrowing from a private money lender or taking on an equity partner, you should always prearrange your financing so that you can confidently and quickly make an offer when a good deal comes along. These you do by:
1. Paying in Full/completely
2. Attract Financial Investors
3. Borrow the Cash for a Flip
4. Partner to Get the Cash for a Flip
The next step is the offer process. Presenting an offer on an investment house involves more than just filling out a contract. Successful investors take the time to understand the specifics of the situation. They then write an offer that respects the needs of the seller in order to craft a deal that’s both fair and profitable.
FIXING
Take your time to do all the necessary renovations, repairing, furnishing that are needed for your house. Replace the replaceable most especially with modern days equipments. While fixing make you cut your coat according to your cloth. You don’t fix beyond your capacity or analyzed budgeting.
Think of your potential profit you desired to see at the end of the flipping process. The execution of your improvement plan will determine how much actual profit you end up with at the end of the flip. Every misstep costs you money, but moving too slowly increases your holding costs and reduces your profit. A successful fix requires balancing speedy execution with the demands of staying on budget and ensuring quality. Hence, try and get a group of experts involved in the fixing process.
SELLING
Once the renovations and fixing is done, you can now put up your house up in the market for sale. Selling your house can be done through newspaper adverts, magazine ads, posting on social media, owner put for sale, online forums, and various websites.
TAKE NOTE: Your sole aim of getting into the real estate Flipping business here in Nigeria is to, make a gain. So, have this in mind that, the possibility of you quickly getting your home sell is surrounded by, the environment, neighborhood, urban or rural areal, presence of every needed amenities.
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