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5 Steps to Boost Your Flips and Maximize Your ROI: Pro Tips for Real Estate Investing
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It is no secret that the real estate industry is becoming more competitive and challenging. Investors need to ensure they get a good ROI, and sourcing deals is difficult when everyone implements the same strategies.
So, what’s the solution? Think outside the box and become an innovator. Today, we’ll walk through the steps Noah Gilliom (a seasoned investor) follows to consistently source deals and get high returns.
What was the strategy for this flip?
Before starting the acquisition process, the first thing to do is to identify the elements that need to be replaced. Will it require many repairs? What’s the cost, and how much time will it take to repair? These are essential questions to ask. Before approaching the former homeowner, these questions were answered, so we started communications.
Step 1. New paint: a brighter color to bring life
When reselling a house, you must make it look as appealing as possible to potential buyers. The walls inside and outside need a bright color to make them look new. In the property we worked on, the plan was to eliminate the dark colors in favor of brighter tones.
You can do a few simple things to make your house attractive to buyers. Firstly, ensure the house is clean and organized; if not, hire a cleaning team. The more attractive a house looks, the more likely it is to sell quickly.
Step 2: New flooring and carpets
As an investor, we must ensure the property is in excellent condition. A fresh and updated look will increase value when you want a quick sale from flipping a home. Therefore, you must get rid of worn-out carpets before completing renovations. It’s a dirty job, but someone has to do it.
Replacing carpets can be costly, and most people want to spend less than $1,000 to replace a carpet. That said, replacing carpet can make a huge difference in getting a good sale.
After all, it is common for customers to want a newly renovated property rather than buy a house that needs renovations. Replacing flooring and carpets may appear to be basic property maintenance, but most homeowners never invest in these renovations. This can be a massive opportunity for investors.
Step 3: Make a nice and comfy loft area
A loft space is a great addition to an old home because you can use it for different rooms. You can redesign the look of a loft space in many ways, such as converting it into an office or making it a bedroom. Additionally, you can transform that space into a lounge by adding a sofa and a few chairs. You can add a bar to the loft if the idea is to have a space for entertaining guests.
Step 4: Fix superficial ceiling problems
Nobody likes a leaky ceiling with a mold problem. When properly maintained, the ceiling can add value to the property – it’s a large portion of any home.
In this case, the property had superficial problems that would need repairing to deliver a house free of structural issues. You must ensure the property is in excellent condition and that the new owners know if it needs structural repairs.
Step 5: Repaint the doors to match the new paint color
Giving the doors a fresh coat of paint is one of the easiest and most cost-effective improvements to apply to any property. A new paint coat can improve the house’s curb appeal and make it look more modern.
As real estate investors, we find gems that need work to make them shiny and profitable. This property required fixing and repairs in general, which can be completed in a couple of weeks.
Bonus: Convincing the owner with direct mail marketing
Using a new approach, we needed to find the right way to contact the owner. Nobody wants to feel stalked or be bothered by many calls and emails.
This is why we decided to use a more traditional contact method, with direct mail. Once the owner got the letter, we received a response! Here was our chance to call and contact them personally to start the deal that would lead to a purchase.
This process was quick. We could visit the property to ensure it was in top condition. After some back-and-forth communication, the acquisition ended, and the seller was happy with the process.
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