Fixing and flipping homes is all about finding the best deal. HGTV shows can make it look easy to find, fix, and flip a home. They make it seem like every investment will earn you big bucks, but that’s simply not always the case. To make money fixing and flipping, you have to make wise and calculated decisions. One of the first decision you have to make is which house to invest in. While many homes are listed on MLS, some of the best deals are located “off-market.” Experienced flippers know how to find these hidden deals. Below you’ll find a few helpful ways to find these hidden treasures to make your business more profitable.
Advertise
It’s smart to get your foot in the door before homeowners decide to list their home on the market. Those homeowners who are mulling over the decision might be more interested in selling if they’re presented with a great opportunity. By advertising through direct mail, postcards, or local newspapers, you present an offer that might make homeowners who were “on the fence” take that leap and sell their home. You’ll be the first (and only) person in line to buy their house, presenting them with a way to avoid the hassle of having to list.
Make and Use Contacts
Estate Lawyers are great assets for those in the fixing and flipping business. With their connections, you will learn about properties that may become available in the near future. Again, it’s a great way to make sure you’re at the front of the line, and in the door, before other potential buyers come looking around. You can join local networking groups to ensure that you’re well connected and on the mind when new properties show up.
Buy at Auction
It’s important to be quick, well researched, and fully prepared for auction day. Come equipped with knowledge of the neighborhood, the property itself, and the amount you’re willing to spend. Auctions are great ways to find foreclosures, short sales, and other great deals, but it isn’t ideal for the impulsive. You don’t want to buy a property for more than it’s worth, so don’t get so excited that you get sucked into a property that you haven’t fully researched. Know in advance which homes you’re interested in and keep a firm budget that you will stick to no matter what. Use sites like Auction.com to find potential deals if you feel like auctions are a good fit for you.
Talk With Local Builders
Again, having connections pays off. Local builders have knowledge of unfinished projects. Sometimes a person isn’t able to complete a project because of finances or other complications. Depending on how much work was left undone, these houses could be a great opportunity for investors to swoop in, finish the project, and make a great profit. Unfinished houses won’t be listed, obviously, so the only way to find these potential treasures is to establish the right connections.
There are several tricks to making a fix and flip as profitable as they can be, and one of them is definitely getting your foot in the door early. By finding these hidden treasures before anyone else, you eliminate competing offers. This will help you get the house for the best price. So, the next time you’re looking for the perfect fix and flip property to invest in, try using some of these helpful tips and tricks to make sure your efforts pay off. When it’s time to finance your next fix and flip, contact us. We are here to help make your fix and flip experience as easy and profitable as possible.