10 Helpful Tips for Investing in Real Estate

Flipping houses can be a very lucrative investment, but it's important to make sure that you're doing everything in your power to maximize your return on investment. In this blog post, we reveal 10 top tips for new property investors who want to start investing in real estate now. These 10 tips will help you find the best properties in New York, negotiate deals effectively, and increase your profit margins while flipping houses! So, let’s get started!

1. Pinpoint Desirable Locations

Location is truly everything when it comes to investing in real estate, whether you’re looking for a small three-bedroom in Suffolk County or perhaps a 6 bedroom in the Hamptons. In fact, according to Natalia Sishodia, a NYC real estate attorney, choosing a home near a school district is very important. Families will be searching for homes that not only provide enough space to grow, but also within a certain district so that their kids can secure a place at a good school. ¹ Even if you purchase the worst property on a popular street, the value will likely increase once you carry out any necessary home renovations.

2. Always Bring Legal Support

Another top tip for anyone flipping houses during such turbulent property market times, is to bring an experienced real estate lawyer with you to help negotiations run smoothly. With their help, support, and legal advice, you can secure more lucrative deals and also be taken more seriously by a realtor or seller. ¹ And this can often give new property investors an edge over other interested buyers.

3. Seek Out Privacy for High Profile Clients

Suppose you are investing in real estate in the Hamptons. In this case, privacy should be on the top of your list as must-haves for properties. This is down to the high-profile clientele you’ll likely be selling the property on to. And when you consider that Madonna is also flipping houses, after buying The Weeknd’s Hidden Hills mansion for a whopping $19.3 million, and is now trying to sell it for $26 million, it’s clear to see how competitive this space can get. So, give yourself the upper hand by taking privacy seriously. And if the property is overlooked but is too good of a deal to pass-up, consider ways that you could make it more private, such as adding trees, shrubs, fencing and tinted windows. ²

4. Learn the Art of Real Estate Negotiation

If you're flipping houses, a key skill you need to learn is real estate negotiation. You need to be able to negotiate with sellers professionally and effectively to get the best possible price for theproperty. How is this done? Well, here are a handful of phrases you can use to win over a seller.

1. I would love to move quickly and close the deal.

2. I am a cash buyer, and I'd love to make you an offer.

3. I am pre-approved for a loan and ready to seal the deal.

4. When you know, you know. And this is the one for me! What are the next steps?

5. I can already visualize how I would use this space, and I can clearly see how it's brought you so much happiness.

5. Form A Home Renovation Team

If you're flipping a house, it's important that you have a solid team in place to help with home renovations. This team should include an experienced real estate agent, a qualified contractor, and someone who is familiar with the flipping process. By having a strong team in place, you'll be able to avoid many of the common mistakes that new property investors make, but also buy and sell faster, securing a healthy profit as you go. Because, as we all know, time is money!

6. Don’t Shy Away from DIY Projects

While it's important to have a team in place to help with the flipping process, you shouldn't be afraid to take on some of the work yourself. There are many small projects that you can do to save money, such as painting, minor repairs, and landscaping. By taking on some of the work yourself, you'll be able to increase your profits by reducing the cost of any repair work or home renovations

7. Understand Your Target Market

Before you start flipping houses, it's important that you do your research. You need to know what properties are selling for in the area and what kind of renovations will be necessary. By doing your research, you'll be able to flip houses successfully.

But who exactly are you flipping the house for?

Are you flipping it for a family? Then you’ll need to make sure the house is safe for children and has enough bedrooms.

Are you flipping it for young professionals? Then you might want to focus on making the house more energy-efficient or adding luxurious features.

Are you flipping it for retirees? Then you’ll need to make sure the house is accessible and easy to maintain. No matter who your target market is, understanding their needs will help you flipping houses successfully.

8. Keep Interior Design Simple & Bright

When flipping a house, you’ll need to keep the interior design concept simple. You don't want to over-personalize the space or make it too unique, as this will make it harder to sell. Instead, focus on bright and neutral colors that will appeal to a wide range of buyers. By keeping the interior design simple, you'll be able to sell the house more quickly and for a higher price. Remember your unique sense of style might not be to everyone's taste, so if in doubt, keep things minimal, bright, and neutral.

9. Curb Appeal Is Key

When flipping a house, it's important to remember that curb appeal is just as important as the interior of the house. And if potential buyers don't like what they see on the outside, they're not going to want to see the inside. So, make sure you spend time and money on making the exterior of the house look its best. Let's be honest, first impressions do count and hanging baskets filled with flowers, a newly painted door, and a freshly mowed lawn will make all the difference. Investing in the exterior of the property will help set the tone of the viewing and keep buyers interested as soon as they pull up to the property

10. Invest in Real Estate Photography

Last but not least we come to photography. After you've carried out home renovations, improvements and have invested time and money into the property, it's time to make a profit. But to attract buyers, you'll need to catch their attention online first. This is where real estate photography comes in. Hiring a professional photographer will help highlight the hard work you’ve put into improving the property and speed up the time it takes to secure a buyer. A professional real estate photographer will bring certain lenses to capture a room in one shot, helping buyers to understand the size and scale of the home too.

How Hamptons Flips Is Empowering Real Estate Investors

While investing in real estate is a smart financial decision to make, the reality of flipping houses can often be overwhelming. But that’s where our team can help. As real estate experts, we can help you secure a passive income from your property portfolio whilst simultaneously managing home renovations on your behalf. So, save yourself precious time and let Hamptons Flips help you profit from your next purchase.