House flipping is not a foreign topic to most people thanks to the success of popular shows like Flip This House and Flip or Flop. However, what many people do not realize is that some of the most successful investors in the industry aren’t on camera. They’re out there doing what they love to do; flipping houses and making substantial profits. In fact, in 2015, 179,778 single family homes and condos were rehabbed in the U.S. alone. That’s quite the number!
Seasoned investors have perfected the art of house flipping with time and experience, learning from their mistakes as they go. Usually, their flips will never flop, but that isn’t always the case. Below, our team of experts has shared a list of tips that we think you’ll find to be useful:
Neighborhood Choice is Important
All too often, investors focus on the property and lose sight of where it’s located. In the house flipping industry, location is very important. If you’re rehabbing a single family home, you’ll want to choose an area that is safe, current, and a place buyers want to be. When buyers look for homes, they know certain areas have good and not-so-good reputations. They are looking to buy in the good spots, especially if they have children.
The House Belongs to You… Temporarily
The goal of an investor is to rehab the property, sell it, and move on. With that being the case, personal tastes are a huge no-no. While you may like bold paint and certain styles, you need to keep the general likes of buyers in mind. Right now, most buyers want clean, contemporary homes. They also are focusing more on green energy, new finishes, and appliances. If you’re not sure what design “must haves” are coveted by today’s buyers, take a look at this article published n inman.com which is packed with great tips.
A huge mistake that investors make time and time again is not securing house flipping loans in advance. There are multiple reasons you want to get pre-approved for a rehab loan. Perhaps the most important is that you’ll have a better understanding of your budget and also have an upper hand when negotiating with sellers. At ZINC, we make the loan process very easy for the investors we partner with. And, unlike other private money lenders, we really do partner with our clients by providing them with advice, industry expertise, and knowledge throughout each phase of the investment process.
Ready to get started? Contact our team today by calling 559.326.2509. We’d be happy to help you make your next flip a huge success!