Did you know the average housing in the United States is worth over $350,000 as of 2022? For this reason, more and more people are getting into house flipping to capitalize on this increase in value.
Although it might seem difficult to find a house to flip, it’s much simpler than you might think. We’ve put together a house flipping guide that has everything you need to know. Let’s explore what you should keep in mind about how to find a house to flip.
Get in Touch With Wholesalers
Wholesalers are people who find deeply discounted properties and then sell them to investors for a small profit. They’re always looking for new properties, so they’re a great resource for finding houses to flip.
You can find wholesalers by searching online or attending real estate investment meetups. It’s also worth noting that wholesalers make a living from working with buyers. So, it’s in their best interest to provide you with the best service possible.
Look For Probate Listings
Probate is the legal process that happens after someone dies. If the deceased person owned a house, it will likely go through probate.
During this time, the house will be listed for sale. Since most people don’t want to deal with the hassle of probating a property, you can often find good deals on houses that are in probate.
Look For Pre-Foreclosures
A pre-foreclosure is a property that’s about to be foreclosed on. The owners are behind on their mortgage payments, so the bank is about to take possession of the property.
Usually, the owner will list the house for sale before it’s foreclosed on. This is a great opportunity to get a good deal, but you need to act fast.
Look For Houses That Need Major Repairs
Houses that need major repairs are often discounted. The owners usually want to sell the property as-is, so they’re willing to negotiate the price.
Of course, you need to factor in the cost of repairs when you’re considering a property. Otherwise, you might not make any profit (or even lose money) on the flip.
Talk to Real Estate Agents
As you might guess, working with an agent can be a great way to find houses to flip. They’re also usually happy to help investors find good deals. It’s worth talking to several agents to see what houses they know of that might be a good fit for your needs.
Check Out Online Listings
There are many websites that list houses for sale, such as Zillow, Redfin, and Realtor.com. These sites are a great way to see what’s on the market in your area.
You can also use them to find contact information for sellers. Keep this in mind when you’re searching for houses to flip.
Join Investment Groups
Investment groups are a great way to find houses to flip. These groups pool money from investors and then use it to buy properties. This is a great option if you don’t have the cash to buy a property outright.
You can usually find investment groups online or through real estate meetups.
How Can I Improve My Chances of Flipping a House?
Buying a house is only half the battle. Afterward, you need to renovate and sell it for a profit. Here are a few tips to help you succeed.
Choose the Right Property
Not all properties are created equal.
You want to look for a property in a good location that needs minor repairs. Otherwise, you might not make any money (or even lose money) on the flip. This could cost you tens of thousands of dollars in some cases.
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Make a Realistic Budget
Before you start the flipping process, you need to make a budget. This budget should include the cost of buying the property, renovating it, and selling it. It’s important to be realistic when creating your budget.
You might run into financial problems down the road if you neglect this obligation.
Get a Good Loan
You’ll need to finance your property purchase and renovations.
Be sure to shop around for the best loan terms. You don’t want to end up paying more in interest than you make in profit. Securing a loan that has unfavorable terms is one of the most common mistakes that new house flippers make.
Hire a Good Contractor
A good contractor can make or break your flip. They will be responsible for renovating the property, so you want to be sure that they’re reliable and do good work.
Get bids from several contractors before making your choice, As this will give you the best chance of finding the option that is best for you.
Sell the Property Quickly
Once the renovations are complete, it’s time to sell the property.
The longer the property sits on the market, the more money you’ll lose. Use marketing techniques such as open houses and social media to generate interest in the property. You should also price the property competitively to attract buyers.
Invest in Digital Marketing
The Internet is a great way to market your property. You can create a website or use social media to reach potential buyers. You can also use online classifieds to find buyers in your area. Digital marketing is essential for any business in today’s world, and that includes house flipping.
Knowing How to Find a House to Flip Is Easier Than It Seems
As long as you keep the above information in mind, you will find that understanding how to find a house to flip is a straightforward process. There are plenty of properties out there that have the potential to be flipped, you just need to know where to look for them. With a little effort, you’ll be flipping houses in no time.
Looking for other useful house flipping tips and Lifestyle information? Be sure to check out the rest of our blog for articles like this one.