You’ve probably heard of flipping houses for profit, but if you don’t have much money to get into the flipping business, you might feel like you’ll never be able to look at flipping at a source of income. While it’s true that it might take a while before you can get into flipping homes, there are other types of high-priced goods to flip that don’t require you to take out a mortgage.
One perfect niche to get into flipping is the world of automobiles, especially if you have a knack for mechanical repairs or have a family member or friend with experience fixing up cars. Set some ambitious goals, get ready to browse an auction or two, and make these tips your top priority.
Buy a car at a good price.
A key factor with any flip is to purchase whatever good you’re flipping at a low price. If you don’t get a low enough price, your profit margins will be slimmer and you’ll be hard-pressed to make much of your initial investment back. That being said, with the used car market currently exploding, you may even be able to have an out selling your flipped car to a dealership and taking advantage of a few of their special promotions if you can’t find a private buyer.
One of the best ways to save money on a car is to buy from an automotive auction. Websites like Auto Auction Mall are online auction websites similar to platforms like eBay that let you bid on cars for sale in Nigeria and other countries, in addition to the United States. Being able to buy vehicles from other countries opens up your window of opportunities to find a good vehicle at a good price, and websites like Auto Auction Mall even help you manage import and export fees to get the vehicle shipped to you safely. This can be a major boon for flippers—just remember to consider these sorts of fees when calculating your investment. This will help maintain financial alignment.
Put some work into the vehicle.
Even if the car you’ve purchased was bought in good condition, it’s important to give the vehicle you plan to flip some TLC before you try to sell it. Make sure to have a mechanic double-check that it doesn’t need any maintenance performed, whether that’s changing the oil, rotating the tires, or having its breaks inspected.
You’ll also want to make sure to thoroughly clean the interior and exterior of the car. You can get this done professionally if you don’t have a ShopVac or similar vacuum cleaner; however, the best way to maximize your profits may be through some mart tool investments.
Resell at a higher price.
When it comes to making your money back on a flip, you’re going to need to list the car you’re flipping at a higher price than you paid for it. At the same time, you want the car to be priced competitively, or else it won’t sell. Using a website like Kelley Blue Book can help you determine the best price to sell your car for, and even connect you with dealers who might be interested in purchasing your vehicle.
Set goals as you look to build profits.
As you start to expand your car-flipping business, you’ll want to make sure to set clear goals in order to sustain your income and growth. One of the best goal-setting frameworks is the OKR framework, also known as the OKR process. OKR is an acronym that stands for objectives and key results, and the OKR process helps you set quarterly goals that align business objectives with a specific set of key results that objective is accountable to. If you’re still wondering “What are OKRs?” and if they’re right for you, do a little more reading online or seek out some software to help you create and measure your business goals. It can help you with ongoing business growth while setting important priorities.