If you watch cable television, you’ve probably seen countless real estate “flipper” shows. If you haven’t, you must be living under a rock because they’re everywhere, and everyone seems to want in on the game. In a strong housing market, the right property can be an amazing investment. But before you go planning how you’ll spend your profits, you need to…well…find, fix and flip. So, how do you find properties that make financial sense to invest in? Here are five tips on how you can locate distressed properties that can be renovated and resold for profits.
If you are a real estate investor and you don’t have a strategy for exiting your fix-and-flip projects, you could be moving your properties quicker – oh yeah, and making more money. Real estate investing is only successful when a marketing campaign is implemented. So, you need a strategic plan to generate leads to buyers or at least allow you to find more deals. If you approach real estate investing as a business, then your real estate business should have an impactful and cohesive brand identity. This identity will be the background of the marketing approach you’ll need to cultivate meaningful relationships with past, present and potential clients. As with any business, it’s crucial that your marketing campaign be comprised of valuable and factual information. And, if you don’t have a marketing strategy…well then you don’t have much of a business, do you?
Keeping costs in line with your budget is vital to the financial success of any fix-and-flip investment property. A major threat to the profitability of your project is theft. Even if you have an insurance policy that protects against these types of occurrences, the process to recoup your losses will still take time, significantly adding to your holding period and whittling away at your profitability. If you want to keep your investment safe and secure, here are some tips to deter criminals from targeting your property:
If you have experience with fix-and-flip real estate projects, you’re probably well familiar with hard money loans. In fact, they’re the preferred method of project financing for many real estate investors for short-term projects. If you’re not familiar with hard money loans, you should keep reading. Their popularity is due to the fact that they are easy to get, they don’t rely solely on your credit score or assets, and they are a much quicker alternative to traditional methods for financing the purchase of a home.
When it comes to fixing and flipping real estate, there is no shortage of mistakes that can be made along the way. Compared to other types of real estate deals, fix-and-flip properties offer some of the largest returns but also come with some of the biggest risks. Too often, investors make errors in judgment that cost them thousands or even tens of thousands of dollars. Here are some common pitfalls to avoid if you want to improve your return.
It’s a fact that many new real estate investors purchase properties solely with cash. Commonly, this is because they have the money available and don’t want to deal with banks or other lenders. But, this is a sign that their investment kung fu is weak. They think that getting a loan to purchase real estate comes with extra costs and restrictions, and while they’re kind of right, that doesn’t mean that using a loan is necessarily a bad thing. There are costs involved with using loans for your real estate investments, but they are often greatly outweighed by other benefits – specifically, that of utilizing leverage.
It’s not always easy to get investment real estate financed. This is especially true for investors looking to purchase properties that aren’t in the best condition, or for people who have trouble borrowing from traditional lenders. Luckily, conventional mortgages aren’t the only options – there are a number of other great financing sources that wise investors use every single day to purchase real estate.
For someone new to buying and flipping real estate, the entire process can seem a little confusing. Sure, there are many important facets that need to be understood in order to be successful, but the overall concept really isn’t that hard to grasp. In fact, most of the knowledge that helps develop successful investors comes in the form of first-hand experience.