So you want to know – how soon will you be rich off of your flip project? Take it from Center Street Lending. You aren’t going to get rich with one flipped house and it’s not as easy as it looks.
Even the most experienced house flippers will say the length of time spent on a particular house varies and depends heavily on the people working on the home and the intensity of the project. But if you’re getting a start on your first house or even just considering venturing into the industry, we can give you some general ideas on what factors to expect.
Here’s Center Street Lending’s general timeline on a smooth fix and flip. Read this original post at CenterStreetLending.com.
Buying the Home
Generally, if you have cash in hand or have your financing in order, you can acquire your house in 5 to 10 days when buying from a bank or private seller.
If the house is a short-sale or from an estate, you can plan on adding an extra one to three months to gain approval through the courts or a lender. With a rental, expect additional time for the renters to leave.
Refinancing (where Center Street Lending can help out) and remodeling is where you’ll be most involved. This is also where people vary in how long your fix and flip will take. And this is where you
Remodeling can even be complete in a 3-4 weeks in the work needed is mostly cosmetic, such as clean up and minor fixes, it can be done in a few weeks. Working with a good contractor will speed things up compared to doing it yourself or with family. With an efficient and communicative contractor and a full crew, while more expensive and eating into your profit, will definitely save you time. But many people enjoy the hands-on enjoy the process of revitalizing a beaten-down older home.
Your remodeling time frame may stretch from a couple of weeks to 6 months depending on how much effort and how much help you have on the project. Generally, 2 weeks to 2 months.
Your target buyer typically will need to secure their loan and go through escrow. This can take time.
Plan to advertise for about ten days before your first open house. If you list it through a multi-listing service (MLS), you sacrifice some cash for commissions, but these real estate agents will know the motivated buyers.
Where you could really lose time here is if your house is over-priced. Research the market. If prices have changed while you were focused on remodeling or if your buyer can’t get financing, you’ll have to start over.
When everything goes well, selling can drag on to 1 to 2 months.
So..how long will it take?
If everything goes perfectly, your time frame could be a little as two months. But this means you buy quickly, remodel quickly and find an eager and easy buyer. So don’t count on everything going this smoothly, particularly on your initial try.
Experienced flippers say they generally figure a flip will take 6 months. If it’s more, hopefully, it’s not the only flip they have going and they can count on a revenue stream from another project.
One way you can speed up the process is to have your financing lined up before you find the house you want to flip. Contact Center Street Lending today to learn about this process so you are ready!