Buying, fixing, then selling properties is a lucrative venture, and the number of homes being flipped annually is on the rise. In fact, according to a report released by ATTOM Data Solutions, house flipping hit a 10-year high in 2016, noting that there were 193,000 flipped homes across the country. But identifying the right real estate investment requires you to find properties with features that appeal to buyers in the current market.
Here's what to look for during your search for the perfect investment property to fix and flip:
Sometimes working alongside your spouse can be a challenge. There are couples who pull it off magnificently, see Chip and Joanna Gaines, while there are others who encounter serious problems. But it doesn't have to be the end of the world if you do come to a disagreement - you just need to be patient, learn to communicate and plan. Here are some tips to help you and your spouse work together to buy, fix and flip a house without undue drama:
When you invest in fix and flip properties, you know that you are going to have to dedicate time, energy and resources renovating the properties that you purchase. However, there are some renovations that are worth more than others.
As you develop your house flipping budget, consider focusing on these 4 renovations to maximize profits:
So, you've found a great fix and flip opportunity, but you lack the time or the pristine credit profile that an institutional lender typically requires. Next stop? A private lender that offers the speed and flexibility that will get you to the closing table before the competition.
Here are four ingredients to a solid business presentation that will help get your real estate investment funded.
House flipping, generally defined as selling property in an arms length transaction a second time within a 12-month period, is increasing all across the country, according to Realty Trac, the information center that keeps its focus on real estate trends. During the first quarter of 2016, 6.6 percent of all sales nationally were considered flips, and the average gross profit from those flips reached a 10-year high.
When it comes to Virginia, it seems that the state isn't just for lovers - it's a good place for flippers, too. Here are some of the cities that are most conducive to fix and flip success...
To succeed as a real estate investor, you need to know how to use the available tools and resources as efficiently as possible. You likely aren't going to have hours upon hours every day to sit in your office and mull over the numbers, search for hard money lending options, scout potential properties and reach out to potential buyers. Rather, you are going to be a mobile operation, spending more time at your investment properties than you will behind a desk.
From assessing your potential profit to determining if a particular hard money lending option is the right fit for your investment, these apps will make you a better real estate investor:
Having a reliable lender back your real estate investments is crucial to ensure your venture is successful. But where can you find a reliable fix and flip lender? If you’re new to flipping properties or don’t know where to start looking for lenders, there are two ways to find reliable and trustworthy hard money lenders:
When you’re ready to sell your fix and flip, you should make sure to address potential problems before you list the property. Issues related to a home’s condition will be discovered during the home inspection anyway, so it’s in your best interest to remedy existing issues before someone makes an offer. At the very least, you should be aware of any problems to make sure there won’t be surprises that could hinder the sale. It’s also essential for you to be upfront with your agent. He or she should know about any major challenges before you start receiving offers, so you can go over all of your options together to find the best way of overcoming them to successfully sell your project and maximize your real estate investment. A great agent will be able to sell your home regardless of the less-than-stellar condition, as long as you are honest, willing to compromise, and proactive in seeking a solution.
Here are six common issues that could hinder your home sale, if ignored:
As you may know, title insurance protects real estate owners and lenders against property loss or damage that might occur because of liens, encumbrances or defects in the title to the property. A title insurance policy may seem seem like a no-brainer for a traditional 30-year mortgage, but what about a fix and flip real estate investment that you plan to be in and out of within 6-9 months?
Does a fix and flipper really need a title insurance policy?
Some may say HGTV has made house flipping seem glamorous. A real estate investor identifies a distressed property, knocks down walls, picks out new appliances, granite and tile, paints the walls, plants some flowers and voila - there's a $50,000 profit to be had. However, in the real world, it doesn’t always work out that way.
Here are 5 mistakes to avoid to help ensure your house flip is a success: