How To Find A Flip – The 7 Suggestion Flip Blueprint
Some investors get into flipping and fail, that’s mostly because they don’t know how to find a flip when first starting out. Flipping houses has become so popular that almost every network has some sort of program about house flipping projects.
Television shows made the popularity of flipping houses grow and the 7 suggestion flip blueprint can help get you started.
A new problem in recent years that’s surfaced is the popularity, it’s created competition between other flipping businesses.
This can also make it a little tougher on new house flippers just starting out.
Competition can increase the price of houses available for purchase in some areas. The bottom line, it can definitely lower your net profit on an entire project.
Finding a good deal is not that hard to do if you know how to find a flip.
Here are some steps to consider before you make that final purchase.
How To Find A Flip – The Right Tools Determines Success
Having the right tools determines success in business, obviously the more deals you do the more money you can make. Private investors flipping houses spare no expense when buying the best house flipping software available. Professional real estate software products are very expensive.
Fortunately, real estate tools like Bird Dog Bot exist, it basically does the same job as the expensive professional real estate software programs.
Learning how to find the best house flips is critical for anyone that’s considering getting into the business of house flipping.
Read the 7 suggestion flip blueprint below to find out how to find a flip house. This post is intended to help you in how you approach the prospective property you’re looking to purchase. You must learn how to find a flip house first before making any potential investments.
It’s best you guard your investment from the many possible pitfalls unexperienced house flipping beginners may not notice.
The 7 Suggestion Flip Blueprint
1. The first one is a big one and if you’re seriously getting into this business you should have this in the budget when possible. You absolutely want to get a qualified home inspection of the property.
For those just getting started flipping houses, this tells of major issues and it helps sell a property that gets very good grades.
The last thing you want is a property that is hiding some major issues like plumbing, electricity, or the roof.
Perhaps the land itself has problems like some drainage issues or something.
You don’t want a situation that kills the budget for a flip project. The whole idea is to finish the project as little as possible to maximize your ROI profit potential.
Potential buyers love when a property has already been inspected and you provide a report to put in their hands.
How To Find A Flip – A Qualified Inspection Report
Buyers also love it when the property gets a great report card from a qualified inspection report. This tells potential buyers that they are buying a great property. Best of all, the report is not coming from you the seller, it’s coming from a 3rd party.
A qualified inspection report helps with the trust factor of any potential buyers.
Having a quality home inspection report can literally make or break a project’s outcome. Utilizing this type of service can help assist you in the buying process with a decision to purchase or not.
You certainly don’t want to find out the hard way that the home has major structural issues. Worse yet that it could be condemned as a direct result of code violations.
The Neighborhood Lemon
2. Most every neighborhood has the neighborhood lemon, it’s the house that doesn’t fit the demographic of the neighborhood. You need to know that the property you may invest in fits the demographic of the neighborhood.
For instance, a small 1 bedroom or 2 bedrooms 1 bath house that’s 750 sq. ft. does not match a neighborhood with 2000 sq ft properties.
You might see some houses that have had additions added because the houses in that area are much larger.
While that does make the house larger, it does nothing for the aesthetics of the exterior in most cases.
You should always keep in mind that curb appeal is very important.
If the house won’t look good even after painting and landscaping than I would pass that deal up.
Remember The Lemon Law
Some cars were made that you could barely give away despite the free price, I still remember the lemon law. The same rule applies to certain houses that were made, it’s a bad stigma for some neighborhood homes.
Getting stuck with the neighborhood lemon that nobody wants to purchase can be downright frustrating. You can’t get rid of the property to just anybody, it will take the right buyer and that may take a very long time to find.
How To Find A Flip – Flipping Houses In Rural Locations
You should find the house type and style that’s in demand within that market and look for the best deals available within that overall area.
Sometimes the house isn’t always within a great neighborhood, it can sometimes be located on a larger piece of acreage for example. Flipping houses in rural locations can still be done but you need to know the exact property specifics for success.
Much like the next heading, some rural locations are desirable and some rural locations are non-desirable. A rural mountain property is a far more desirable property than some rural desert land or an old farmhouse in the middle of some field.
Buying In The Right Neighborhood
3. The secret to finding a good flip falls within buying in the right neighborhood. If a house is in a questionable neighborhood you may want to pass on that deal. Don’t invest in upscale homes in that neighborhood, you could lose your investment.
However, if you find a flip in a upscale neighborhood really cheap you’d probably see a solid ROI with that investment.
Try to find a flip in an upscale area that’s in need of some minor cosmetic repairs. Fit the repairs into your property budget so the house can be flipped quickly.
This might seem like a strange comparison but again I will tap the used car market as an example.
There are so many used car dealers, some car lots have junk and others are full of great clean used cars.
The same comparison holds true with neighborhoods, some neighborhoods are full of worthless houses I would never invest in. While other neighborhoods may offer some of the best houses to flip you may ever find as a house flipping investor.
Those are the types of neighborhoods you want to look at for the best potential return on investment. Those neighborhoods are also where you may find the best house flips projects available.
How To Find A Flip – Pre-approved Buyers
People who buy in upscale neighborhoods are already financially successful and most are pre-approved buyers with a number. That means it’s not a question of whether they can qualify to buy a property you may have on the market.
It simply comes down to whether they’re actually interested in purchasing your flip investment. Again, the selected neighborhood means everything in house flipping. It can determine whether you’re successful or not with a flip.
Almost every town has these types of neighborhoods to search for the right flip. Buying property should always come down to the right neighborhood, not for profits but also the type of buyers involved.
Buy Second Hand Materials
4. Something to consider is to buy second-hand materials whenever possible. Achieving the vision for a property without getting into any structural aspect of things is perfection.
There are some walls you bust through and some that you should never consider with a flip. The biggest factor is cost, but also consider you’re not building houses. You’re making quick repairs to sell a property.
Everyone has a vision with an eye for what they’d love to see happen with a flip. However, you need to curb that vision of making the property a palatial palace.
Always keep in mind that the flip is not actually going to be your new residence. I have a friend in S. Florida who lived in every flip he’s done.
At home, you normally fix things up, but a flip should be fixed as cheaply as possible. The idea is to get in and out as quickly and cheaply as possible.
This business has grown so much so that there are used stores to buy second-hand materials. These stores sell reclaimed materials to the general public, it’s like a thrift store for home materials. Love these places.
Utilizing Project Spending
You can literally save thousands of dollars by shopping in these types of stores for anything and everything. I’m located near Gainesville Florida and one local favorite place to buy reclaimed materials is called The Repurpose Project.
I try to visit there as often as possible as their inventory changes frequently.
There’s some really good deals on materials needed for flipping at most flea markets and repurpose stores.
How To Find A Flip – My Recent Score At The Flea Market
I recently scored a Kohler 16″ deep stainless double sink for 15 dollars at the Waldo flea market near Gainesville. If I purchased the same sink at a retail building supply store it would cost about $400 or more for that particular sink.
The sink polished out beautifully using Barkeepers Helper and fine Scotch-Brite pads, it received new fittings and it looks great. When utilizing project spending you reap the profit rewards when you come in under budget on any finished projects.
Consider Hiring Extra Hands
5. You need to know what kind of time frame it will take to complete the project for your house flip deal. The faster that you can complete the project means the quicker you retrieve your investment and profits.
Properties that require excessive repairs can ruin your time frame with permits, inspections, parts delay, and the actual work time required. You need to arrive at a property to take that first look and be able to envision a time frame.
Try to determine how long it will take to complete all the repairs needed. Your goal is to stick as close to that timeline as possible.
You don’t want to get in a situation where it takes 2 months longer to complete a flip. Situations like that can easily eat up your budget fast as time ticks on by.
To expedite the speed of a project and keep a time frame, consider hiring some extra hands to help with the work.
House flippers in business alone or maybe with one partner you should definitely consider outsourcing some of the work. This can really help move things along very quickly.
How To Find A Flip – Use Labor Finders
You should use Labor Finder’s staffing or something similar to clean up the landscaping and do things like painting. This saves you money over hiring companies that would charge you 10 times the amount to contract that work.
The benefits of hiring temporary workers improve your timeline. It also relieves the workload and allows faster completion of the flip. Try using a day labor force service to employ a few people for a few days to get important jobs completed.
Good Prospects In Hard Sell Area’s
6. Again we go back to the neighborhood, you need local data to find good prospects in hard sell areas. You need to know whether an area is in demand. Just because the neighborhood may be upscale does not always mean it’s in high demand.
One example, an older upscale neighborhood and a brand new upscale neighborhood both in close proximity to each other.
The direct result of that type of scenario can lead to lower-priced homes within the older upscale neighborhood.
This can offset buyer’s interests because they are now way more interested in the new neighborhood development homes.
However, even with low prices, it’s still not a good prospect within hard sell areas.
Learn The Tricks Of The Trade
It’s really not hard to find high-quality upscale houses to flip once you learn the tricks of the trade. However, it certainly defeats the purpose if you can’t sell a flip property that you have invested money in.
This is why you need to know what’s happening with the local real estate in your particular neighborhoods. Why get stuck having to carry the flip waiting for it to sell, that could take months or years.
Learning local information can save you from a total house flipping failure and or a loss of investment.
How To Find A Flip – Reasons A Homeowner Sells
There are many reasons a homeowner sells their house well below market and it’s not always because of needed repairs. Sometimes other situations can come into play like divorce, job loss, an inheritance, taxes owed, and many other reasons.
These are all fantastic opportunities for a house flipper to make a great profit on a well below market deal.
Be Realistic Of Your Own Talents
7. You need to assess what work you can do on your own and what you can not do on your own. This is important to determine how you outsource any work, so you want to be realistic about your own talents.
Sort the jobs where you need professional help and where day laborers are needed to move the project along quickly.
You may need to consider whether it’s cost-effective to flip the house that’s got your interest.
If the investment requires professionals like electricians, plumbers, and roofers it may not be worth the investment.
Always be realistic of your own talents, sometimes things can seem easy, but can you actually do the work?
Don’t overestimate your abilities with repairs and get stuck spending big money on something that you intended to fix yourself.
A Sure Fire Budget Drainer!
You might think you can do a job you’ve never actually done before only to find yourself frustrated. It’s best to hire professionals to get that job done.
Not everyone can tile a floor, finish drywall or even paint a house inside or out for that matter. The project list should be evaluated to check off any of the jobs that you can do yourself.
This will leave the areas unchecked where hired help is needed on your list. Getting stuck paying professionals, that’s a sure-fire budget drainer! Plan your budget accordingly to accommodate expenses for professional help, it’s never cheap.
How To find A Flip – Total Investment Cost Requirements
You need a clear realistic understanding of total investment cost requirements associated with flipping a property you intend to purchase. Find out the bottom line with any intended house flip and that means given worst-case scenarios as well.
Will the property still be able to produce any profit for you or will it be a total loss?
Try using these guidelines when checking out potential house-flipping property investments. You should do well with your next house flip as this post will help you in deciding a great flip deal.
Of course, buying a flip you find appealing is a great idea since you’ll be spending time there fixing the property.
I hope you’ve enjoyed reading how to find a flip.
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