How Fix and Flip borrowers Can Find Better Deals

One of the biggest keys to a successful fix-and-flip project is finding the right deal before everyone else does.

Here are a few common ways investors find fix-and-flip opportunities:

1. Build relationships with wholesalers Wholesalers often find off-market properties and assign the contract to investors. A good wholesaler can be a steady source of opportunities, but borrowers should still run their own numbers before moving forward.

2. Work with investor-friendly real estate agents Some agents specialize in distressed properties, estate sales, as-is listings, and investor opportunities. The right agent can help identify properties with room for profit, especially when speed matters.

3. Search the MLS for distressed listings The MLS can still produce good deals when borrowers know what to look for. Keywords like “as-is,” “TLC,” “handyman special,” “investor special,” “cash only,” or “needs work” may point to properties worth reviewing. Current investor guides still list the MLS as a useful deal source when investors move quickly and know how to analyze distressed properties.

4. Look for off-market opportunities Direct mail, driving for dollars, networking with property owners, and targeting vacant or neglected homes can help borrowers find deals before they hit the open market.

5. Attend auctions or monitor foreclosure opportunities Foreclosures, sheriff sales, bank-owned properties, and auction platforms can create opportunities, but borrowers should understand the risks, title issues, deposits, inspection limits, and timelines before bidding.

6. Network locally Real estate investor associations, contractors, attorneys, estate professionals, property managers, and other investors can all become referral sources. Many good deals come from relationships, not websites.

7. Analyze every deal carefully Finding the property is only step one. Borrowers should confirm the purchase price, rehab budget, ARV, holding costs, selling costs, and expected profit before committing. The goal is not just to buy a property — it is to buy with enough margin to make the project worth the risk.

At First Funding, we can help review the financing side of the deal so borrowers understand how the loan amount, rehab funds, points, interest, and cash-to-close may affect the project.

Have a property you’re looking at now?

Send us the address, purchase price, rehab budget, and estimated ARV, and we’ll help you review the numbers.