When it comes to businesses with quick and significant earnings, there are few quite like flipping property. Then the game takes on another level when what is being flipped is La Quinta real estate. Widely known for being the location of some of the most luxurious residences in the state, homes for sale in La Quinta, CA on their own can already command high prices on the market.
When fixed up to match or surpass its original splendor, a high-end property can definitely be a high-end earner. Yet, flipping property, much more luxury homes, is not as easy as it sounds. So before you pool your resources and start scouting the La Quinta classifieds for property to have your next home improvement project, it’s best to keep the following things in mind.
Get that pre-qualification
As you would when buying any other property, it is ideal that you get pre-qualified for a mortgage before proceeding with your luxury home search.
This is even more important when purchasing luxury homes because these types of properties are considered as extremely high mortgages, and the way to authorization often takes longer than if you were applying for financial loans for more modest properties.
When this happens, it’s important to understand that you’ll not only be losing a little time enduring the process, but that you’ll actually have to put some effort in showing the lending company that your pre-qualification is worth considering.
Be ready to commit your finances
Acquiring a luxury home in itself means spending a significant amount, and even more so when attempting to spruce it up. Remember, in order for a luxury home to be successfully flipped, the flipping must be of a similarly high-end fashion.
For most luxury properties, outdoor kitchens, dining rooms, and sitting areas are very popular, as are high ceilings and hardwood floors. To best know what to do, get an understanding of what your target market is looking for. Is it a primary residence, a family vacation home, or even a luxury home rental?
Also, be prepared to take on significant carrying costs (holding costs) for a luxury home. Because it often takes about a year from the time you buy the house, you should be ready to have a large portion of your capital tied up in a loan payment.
Plan for the unexpected
It’s one thing to run into surprises flipping a mid-priced home, it is quite another when it happens with a luxury home. Like with any real estate project, some things can go awry, so it’ll be good to have some of your finances set aside just in case of emergencies.
In addition, you’ve painstakingly gone through hoops to get approved for a mortgage and acquire your target property. So the least you could do is to have the place evaluated so that you don’t end up with an investment that is less of a quick flip and more of an endless money pit.
To be ready for your luxury home flipping project, it’d be best to work with notable La Quinta realtors to assist you in finding the right properties to start with and help you with your eventual market.
Call us at 760.567-7822 or feel free to send a message to Kathleen O’Keefe Galligher and have all your La Quinta real estate questions answered.