It seems like there are all kinds of house flipping TV shows now. Even on late night television there are all kinds of info commercials about flipping houses. We bring this up because one of our partners has started flipping houses as of late, and to our surprise, she has been doing really well at it. So in light of her success we thought we would share some tips for flipping houses yourself since it is such a hot topic.
According to Susan, flipping houses really isn’t that hard. She says the hardest part of it is actually finding good deals to flip at first that make sense. No buying properties in war zones and of course buying properties at the right price and not overpaying. She goes through a lot to determine if a property is a good candidate for fix and flip or not. One article that she showed us does a good job of describing how to find good properties:
Buy Your Investment Homes In Areas You Know
The very best investment homes you are going to find are in your backyard. Usually when new investors lose money it is because they were investing in a neighborhood they weren’t familiar with. You know your town, your area and what markets are doing there as well as the good streets from the bad ones. You are much less likely to lose money when you know the area that you are investing in.
Another thing that must be considered is the entire block. What do the adjacent and around the corner properties look like? Are they being kept up with? Are they rundown and vacant? You must also carefully consider the investment homes location in a subdivision. Did you know that the same house just a couple of blocks away can be worth 20% more? The same thing applies to an investment home that faces a double yellow line at the beginning of a subdivision vs one that is a couple of streets in.
Use The Internet And Other Online Resources
Once you know where you want to invest the next thing is to actually find the best investment homes available. The internet has a rather large selection of sites and services that can make your investment home search much easier. Not only are there great wholesale websites such as ours, but also other major sites such as Zillow, Trulia and Redfin that can give you some good leads. These websites have filters that you can apply to your search to adjust for your specific requirements and needs to help you find the very best investment homes for sale in Atlanta.
Once you have found a good property that makes sense Susan says the next obstical is doing the right amount of repairs and updates without over doing it and cutting into your bottom line. She hooked us up with one of her favorite blogs that she uses for info on house flipping and what makes sense as to completing repairs:
Flipping Your Investment Property
After you have your scope of work down, next you need to look at your end buyer and other properties in the neighborhood. If all the properties nearby are selling at 100k to 200k, more than likely your end buyer is working middle class. No need to ad in extra expense by making the property look like the Taj Mahal!
Epic Real Estate posted an article that will probably help you stand back and evaluate your end buyer a little better:
#2: Know Your Customer & What They Want
The only way to get what you want is to give enough people what they want.
After calculating equity, you should have a good idea as to who you customer will be. For example, if you need fast money and you’re willing to sacrifice some of your equity to get it, your customer will probably be another investor – likely, a cash-buying investor – for the fastest close. In most circles, this is referred to as wholesaling.
On the other end of the spectrum, after fixing up the entire property and maybe even adding square footage, your customer will most likely be a resident owner – someone who will actually purchase the property to make it their home.
Read the full article “Repairs And End Buyers“
Now you are armed with some valuable information on house flipping if you are thinking of getting into the real estate game. There is a lot more to it, so be sure and find some good blogs to follow and learn all you can before you actually attempt your first flip. We have included some more of Susan’s favorite blogs for you to check out and learn more on flipping houses;