Tips to Find the Best Properties for Fix and Flip Business
Finding properties to support your fix and flip business can be a challenge at times. You’re not picking out a home you love, after all. You’re picking out a home that you hope everyone else loves. And most importantly, people must be willing to pay for it.
As you consider various properties to expand your portfolio, you may be wondering what features and amenities you should prioritize. After working in the fix and flip industry for many years, here are our best tips for finding high-earning properties.
Have Your Financing Lined Up
In the fix and flip industry, you need to be prepared to act fast. If you see a house that will make a good investment, you can’t take your time getting your financing. You need to acquire the property as soon as possible so you don’t lose it to another investor.
The best way to line up financing is by working with a hard money lender. With hard money, you can get financing for your fix and flip property in a matter of days. These loans are much easier to qualify for, and you can include renovations in the loan. As you build up a relationship with your lender, they may also grant you more flexible terms over time.
Know Who You’re Selling To
One of the most important things you must do is understand your buyer. What are the demographics of your area? Who is buying homes right now? What types of homes are popular?
By understanding who you’re trying to sell homes to, you can identify properties that will be desirable and sell quickly. Some of the most popular housing features among today’s buyers are hardwood floors, energy-efficient appliances, granite countertops, walk-in closets, and large kitchen islands.
Familiarize Yourself with Good Locations
When buying a home, location is everything. So, set yourself up for success by picking a property in a desirable area, even if it’s run down and needs extra work. You’ll still be able to flip the property for more than a home in better shape but in a less desirable neighborhood.
So what defines a good location? Generally speaking, good locations are those with centrality, low crime rates and highly rated schools. Nearby parks, libraries, community centers and green open spaces are also important factors for buyers.
Learn from Your Contractors
Lastly, another way to help you spot the best properties is by knowing what type of work will be involved. A property can look rough on the outside but only need cosmetic improvements. On the other hand, a property can look fine but have costly foundational problems.
To make good judgments, work with a strong team of contractors that you can learn from. This way, you’ll know which homes are worth bidding on and which to leave behind.
Get Your Funding from First Funding Loans
In time, you’ll become a pro at picking out the best properties for your fix and flip business. You’ll have enough experience to make these calls with confidence. To start building a relationship with a hard money lender, give First Funding Loans a call today.