Fixing and flipping houses is a great way to generate income, whether you take it on as a full-time task or use it to generate extra funds across the course of the year. However, In order to reap all of those benefits, you need to choose the right house. Finding the right house to flip includes a number of key elements.
Check the Neighborhood
When you're looking for a house to fix up and flip, the best way to start is to check the neighborhood. A neighborhood where all of the houses are rundown and no one is making an effort to fix them up won't be able to support the purchase price of a home with many renovations and you may not be able to make as much money back as you think. You should also check to make sure that well-maintained homes throughout the area are selling quickly, efficiently and not lingering on the market for a long time before they finally move. A great fix and flip property will sit in a neighborhood that is being restored over time. You may see plenty of construction going on throughout the neighborhood. Also, make sure you check for things like:
Choosing the Right Property
You've examined the neighborhood, and you think you've found a great property to flip. Next, you need the right house: one that has great bones and will be easily fixed up. Chances are, a few coats of paint won't be enough to transform a house and make fixing it up worth your while, but you can look for these key characteristics in the house you're planning to fix up.
While it's not a must-have, looking for a house to fix up that has no curb appeal can go a long way toward making your fix and flip easier than anticipated. Many buyers will struggle to look past an overgrown yard or form an opinion of the house because of its poor exterior paint job, both of which can be fixed up fairly easily and inexpensively for considerable profits.
When you pick up a house to flip, your goal is to choose a house that you can afford, then do the renovations on, without exceeding its probable purchase price. This isn't a home you're planning to live in; rather, it's an investment that you're making for a profit. Avoid paying market value for the house that you're planning to flip. Instead, look for foreclosures, houses that are being marked down for quick sale and other less-expensive homes. If possible, have your contractor go through the house with you before purchase to prepare an estimate for the cost of your repairs.
Fixing and flipping houses can be a profitable business, but it's important to approach it as the investment it is. If you need help securing the funds you need for your investment, contact us today to learn more about how we can help.
Fixing and flipping houses is a great way to develop a side income--or even to provide for your family, your retirement and more. If you're looking into fixing and flipping houses, however, you'll quickly discover that one of the most frustrating parts of the process is waiting: waiting for funding approval; waiting for contractors to complete their work; waiting for your home to sell. While there are times when you can't hurry the process, fast and easy funding for your house flips is a very real possibility--and there are several reasons why you need to secure it for your endeavors.
1. Great houses often go fast. When you're looking for the perfect house to fix up and flip, you want to be sure that you're able to secure exactly the right one. You want a house that can be purchased and fixed up within your budget, one that is relatively easy to put back together and one that has strong bones and great appeal to your target buyers. Unfortunately, if you recognize the quality of a house that you want to fix up and flip, someone else can see the same thing and buyers in a hurry to sell might not be willing to wait for you to secure those important funds.
2. The sooner you secure funding, the sooner you can get started. When you're ready to start work on the house you've chosen, you don't want to find yourself waiting around on the bank. Not only that, your funds will be tied up in the house until it's sold. The longer you have to wait to get started on the house, the sooner you can move on to your next project and the sooner you can allocate those funds to something else.
3. Securing the funds for your fix and flip house shouldn't be the hardest part of the process. There are plenty of challenges ahead in your project, from discovering potential problems with the home to securing just the right buyer. Securing the funds you need in order to begin your project shouldn't be the most complicated part and with easy funding, you can keep your focus on other elements of the project.
4. You need to quickly know how much you can spend. You have a budget in mind for renovations to the house, and you're dreaming of repairs and fix-ups that will make it look its best. If your budget fails to meet those goals, however, you won't be able to go forward with your original plans and that can mean both time and money wasted on your project. Easy funding for your fix and flip house makes the entire process run smoother.
5. Stay inside the window of ideal timing. There are certain times of year when it's easier to sell a house and when you'll likely make more from it. You don't want to miss that window and end up holding on to your mortgage for another year, losing out on money in the process. Quickly securing your funding will open the door for you to take care of all of those other important tasks in a timely manner.
Whether you're just getting started with the fix and flip process or you've been working at this for years, but need to secure additional funding, we're here to help you get the fast, easy funds you need for your next fix and flip. Contact us today to learn more about how we can streamline the process, making it easier for you to start work on the house and get it flipped in a timely manner.
When you're flipping a house, you put a lot of time, effort, and money into the project. After you've completed the renovations, and staged the home, you eagerly await customers in the hopes of making a quick sale. So what do you do if the house sits on the market, and days turn into weeks, and weeks turn into months?
First, don't panic. Next, you need to take a deep breath, step back, and admit that your precious flip has indeed flopped. You might become tempted to give up on the property and suffer your losses, but don't be too hasty. Instead, try to figure out why the house isn't selling and fix any problems as quickly as possible to save your investment.
Reasons for a Flip to Flop:
When you put in a lot of work on a project, you may set your price too high for the neighborhood in the hopes of making a more substantial profit for all of your efforts. You can charge more for your flip than the homes that are for sale in the area; however, charging a significantly higher price will turn away many potential buyers, regardless of the updates that you've done on the home. Buyers would instead search for a home with that sort of elevated price in a better neighborhood. To avoid this, stay competitive with your price to give yourself the best chance of a sale.
Sometimes to save money, you'll hold back on the number or quality of renovations done on the home. Potential buyers will notice these decisions causing them to pass on your house, even if you've listed it at a decent price. Though you don't want to over-improve a home, based on the neighborhood, you also don't want to under-improve the residence. Research what you've done to ensure that you've included all of the updates that buyers in that area expect in a home.
3. Professional Contractors
If you decided that you could save money by doing a lot of the work yourself, you should take a second look at the results. Or, better yet, ask a neutral party for an honest opinion about the work. Sometimes people think that they can do their own renovations rather than hire a professional contractor. If so, it's an excellent way to save money, but it's rarely the case. Even if you can do a superb job, you also need to factor in the time it takes you versus a professional to complete each task. The more time the project takes, the more money it will cost you. You won't be able to list the house as quickly, and you'll accrue more costs such as insurance, taxes and fees.
4. Listing Information
Look at your listing information. You need to include a significant number of gorgeous photos, along with helpful information about the home to appeal to the highest number of potential buyers. If your listing looks shabby, people will assume that the house will look unappealing as well, and they won't consider coming out to look at it. Make the best first impression you can with an aesthetically pleasing listing that people won't be able to resist.
5. Buying Patterns
In certain neighborhoods, houses don't sell very well for a variety of reasons. If your flip is in such an area and you didn't research buying patterns beforehand, consider renting out the house instead, until things improve in that locality. This way the house won't sit empty, and you can get back some of the investment.
Don't get discouraged if your flip flops. Try to work out a way to turn your investment into a success. If you need funds to get started on a house flip or additional funding to help your current flip succeed, please contact us today.
Lots of people are flipping homes nowadays. To get a faster sale at a better price than your competitors, you'll want your flip to stand out from the crowd. To do this, you can add features to your home that many won't even think about doing. Some involve a bit of an investment, while others require more imagination and good taste than substantial cost.
Homes with added architectural details will always draw more interest than homes with standard designs. One great idea is to install beadboard in the kitchen as your backsplash. You can also put it on the ceiling in your living area or in a bedroom between exposed beams. Beadboard looks stylish in front of a built-in tub too and will add a chic look to your master bathroom. Crown molding is another excellent architectural detail to add to a home. Include it in your formal dining room to give the space an elegant appearance. You can also add it to the tops of your kitchen cabinets to make the room look higher and detailed. Another idea is to include a framed archway in your home from the entry into the central living space or from the living area into a hallway. An arched entryway without any embellishment can look dated, but a framed one will add a trendy appearance to your space. Choose a frame in the color and design that matches the home's style best.
Another feature that will wow any potential homebuyer is an upgraded kitchen that includes appliances built right into the cabinetry. For example, you can match the range hood to the rest of the cabinets. To give it a genuinely classy look, just add a few decorative touches. You can also build-in the dishwasher so that it's almost invisible among the kitchen cabinets. This design creates a seamless appearance in any kitchen which will make your space look cohesive. Depending on your home's layout, condider including a built-in refrigerator. This feature is a favorite with homebuyers. With a recessed fridge, nothing sticks out in the room, so it keeps the design lines straight and makes the kitchen look a lot larger. If you can hide the refrigerator inside beautiful cabinetry, you'll create a luxurious appearance that everyone will love.
Don't overlook the lighting features when you're trying to sell a home. A potential homebuyer will immediately notice if these features are of low-quality and will soon need replacing. Install a stunning chandelier in the entryway to make the best first impression on people touring the home. Lighting with wrought iron or a brushed nickel design is an excellent choice. In the living room, recessed lighting will give the area a contemporary look that everyone will appreciate. In the kitchen, include gorgeous pendant lighting over the island to add more flair to the room. You'll want to make sure that you include enough lighting in the formal dining room to turn that space into an entertainer's dream. Also, anyplace in the house where you see dark corners, consider installing one or more wall sconces to illuminate the area. By including additional lighting to brighten up a home, you'll make it look more open, airy and welcoming.
If you're a residential investor who's flipping a residence, consider including one or more of the above features in your home. For flippers who need help funding upcoming renovations, please contact us today. We can assist you by financing your project with the right loans, so that you're able to get started as soon as possible.