Did you know that the location of the house you choose is crucial for fix and flipping?
Yeah, it is easy to tick off a checklist while you choose a house, but if you pick the wrong location, it’s not going to work out. You will have a hard time finding investors.
Just like it is ideal to know the depth of the water before you dive in, you gotta research the location before you pick your house. Choosing the wrong one would result in poor returns for you.
Having been into real estate fix and flipping for years, we have narrowed down some tips to help you find a good house to flip.
The best way to find houses to flip is to either connect with real estate investors or join a real estate group.
Never underestimate your local community. Your community is just like your friend’s circle, the more the merrier. Finding a house to flip can be so much fun with your friends.
Make the most of the community by looking for real estate deals just as they are going on the market and get in touch with fix and flip investors.
You can make the environment much lively by working with other people in your industry. Having a guide is most important at any point in your life, so connecting with a real estate agent is essential.
Too many choices can often blur your focus, narrow them down for flipping houses by targeting a specific real estate market.
You could focus on neighbourhoods that are up and coming but not yet popular. This could work in your favor, as you would spend less money on a home’s purchase price and property taxes.
You are more likely to get investors in a neighbourhood with decent amenities such as access to public transportation, parks, libraries, good schools, shopping, and local businesses. Real estate experts suggest choosing a neighbourhood that attracts buyers in search of a good deal.
Have you ever wondered how successful fix and flippers always land on the right home and get maximum returns? This is because they purchase investment properties below market value and add value to achieve the highest return on investment. In other words, they go for foreclosed homes in auctions.
So, why foreclosed homes? You may be wondering. What if I told you that you could purchase homes which are less than what they are worth.
Yes, that’s right. Foreclosed bank-owned homes are listed for less than what they are worth because it costs banks money to hold them. Banks want to sell off these properties quickly so they often provide excellent deals to real estate investors.
Another interesting way to land on a good real estate deal is through auctions. However, do so only if the bidding stays low. You need to be cautious, as you won’t get to see auctioned homes in person. Also, you might have to spend more on the renovation, which would impact your returns.
Bear in mind that auction homes are not financed via a mortgage, so you need to buy them in cash. Your best bet is to consult a renowned real estate agent to guide you through the process.
Ever wondered where foreclosed homes that remain unsold in an auction go? They become real estate owned properties (REO), which means that the ownership of these properties reverts to a bank.
Since banks are keen on unloading these properties quickly, they get rid of them in bulk at a low price. You could find it hard to purchase a single home from them.
With the new normal in play, it is ideal for you to switch to online forums instead of visiting real estate investors’ clubs. Online forums enable you to check for different properties in your area, look at relevant images, and choose a house.
Online forums also let you connect with private money lenders and real estate investors for additional support. These forums would make house-hunting much easier and safer from the comfort of your home.
Organizing project documents, sharing them with investors, and chatting with them could be quite challenging. Getting in touch with like-minded investors and showcasing real estate projects could be hard. Also, it could be daunting to find new projects for investment in the digital world.
What if I told you that you could do all this with the help of a robust online platform. MAST can help you achieve your real estate investment goals and connect with investors with ease.
MAST enables you to view projects, choose a suitable one to invest in and monitor your investment through its data enrichment feature. Organizing your inbox and communicating with private money lenders and investors can be made easy with MAST’s user-friendly UI.
The best ways to find a good house to flip is by getting in touch with a community, making sure that the house is close to essential services and leveraging the use of online forums. You can showcase your projects to investors, monitor your investments, and communicate with investors and real estate lenders through robust platforms like MAST. Follow these six simple steps to invest in the right house and become a happy flipper.
If you’d like to explore more on this topic, simply get in touch with one of our expert advisors. We’d be happy to help!