House Flipping Tips: Where do you find investment properties?

House flipping isn’t a new concept. However, it is a great way for investors to build up their capital. Some people choose to remain flippers, increasing from flipping just one or two properties to an entire portfolio. Others choose to move onto different types of investment. Nevertheless, one thing is certain. For your flipping to be a success, you have to find the ideal investment properties, to begin with.

 

Here’s what you need to know about property flipping, including where to find those homes that can be turned into lucrative investments.

 

Speak to an expert

Click Here to Learn More

What is house flipping and how does it work?

House flipping is the term used for a real estate process whereby an investor buys a house then quickly sells it again for a profit. In order for the transaction to be considered a flip, the investment property must be bought with the intention of selling it again very quickly.

 

There are two different types of flip that investors can do:

 

Option 1: Buy a property that needs some repairs but has the potential to increase in value if the repairs and any other updates are carried out. These ‘fixer-uppers’ can be fairly lucrative provided you retain firm control of your restoration budget.

 

Option 2: Buy a property in a market where home values are rising rapidly. These properties don’t require any updates or repairs, but instead can be resold a few months later for a tidy profit.

 

Some investors stick to just one type of flip, whilst others may dabble with both. If DIY isn’t your thing, or you don’t fancy paying trades to carry out the necessary work, you may prefer to stick with option two.

 

How to find properties to flip

There are a variety of different ways to find properties to flip. Some of our favorites include the following:


 

Foreclosure auctions

Foreclosure auctions can be a cost-effective way to acquire real estate below market value. These involve properties that have been repossessed by banks due to the owners being delinquent on mortgage payments. These auctions are usually held either at the bank or at the property itself. Since the bank is attempting to recoup loan balances, the starting bid can be fairly high.

 

Real estate wholesalers

Real estate wholesalers find and contract distressed properties with the purpose of reselling them. It is important to note that wholesalers do not typically carry out any renovations, so if you are considering procuring an investment property from a wholesaler, you are almost certainly going to need to invest time and money in repairs and updates.

 

Direct from homeowners looking to sell

Many property flippers employ direct marketing tactics in order to source homes. This can include leaflets, radio, cold calls, direct mail, and even television. These are designed to target homeowners looking to sell so that they can get in early and avoid bidding wars which inevitably drive prices upwards.

 

 

If you are considering flipping houses and you need financing to support your plans, we offer up to 100% financing on real estate investments. To find out more, please get in touch with our offices.
 

Get a quote in 3 minutes

Click Here to Learn More

​​​​​​​


​​​​​​​


​​​​​​​


​​​​​​​


​​​​​​​

Inquire Now
admin Real estate https://s3.amazonaws.com/static.organiclead.com/Site-48750597-fad4-4739-909d-ca390a15c8e5/theme1/realtor.jpg