Have you always wanted to flip a house? We have put these 4 tips to flipping a house in Fort Wayne the fast and simple way!
Flipping properties can be a perfect way to see big profits quickly. However before you dive right in, there are a few things you need to know that they don’t show you on TV.
If you are ready to make money flipping Fort Wayne houses, check out our 4 tips to help you get started.
Get Your Team Together
When flipping a Fort Wayne property, you shouldn’t be alone. It is crucial to build a team of experts you can rely on for help with many of the details. You will want to build relationships or network with:
- Real Estate Agents – They can help you find and then sell the homes you want to flip. Remember investors make money when buying a house not when selling a house.
- Financing contacts – These can be hard money lenders, private lenders, banks, and/or credit unions. Having a person in the financing field you can call on is extremely helpful. Not only to get the deal funded when you find it, but also to help fund it when you find a buyer.
- Contractors – This is arguably one of the hardest parts about flipping a home. Especially the last few years. The market has been so hot that contractors, especially good ones, are swamped. It has caused the price of repairs to go up dramatically which in turn makes some houses impossible to flip because their is no money to be made for the risk taken.
- CPA – This can be found later, but a good accountant is worth their fees.
If you want to Flip a House in Fort Wayne it isn’t easy but having a good team behind you makes the process easier.
Know How and Where to Find Undervalued Property
This should be number one after developing your team. This is assuming you have educating yourself. With the number of foreclosures dropping over the last few years, prices have went up and it has been harder to find a house to flip in Fort Wayne. More people and even home owners have flocked to banks to buy foreclosures over the last several years. Many banks and government entities will offer the homes to owners first before allowing an investor to bid on them.
Nowadays, you have to do a little digging in order to find that diamond in the rough. Working with realtors you like and trust is a great way to find homes with owners ready to sell fast, or homes being sold in need of some major repairs.
Going straight to home owners in some kind of financial trouble is another good option in this market. If someone is going through a divorce, has back taxes, or unable to keep up with a dilapidated house they are more likely to let it go at a discount just to get it sold and not deal with the issues it presents.
Finding these sorts of homes at a reasonable price is what every good house flipper is looking for.
Know Your Buyer Before They Walk in The Door
Location, Location, Location. You have heard that said a million times about real estate. There is a reason for that. It is true. Prior to buying any property, you need to do your homework regarding the area. Is it popular with retirees? Families? First time home buyers? Who are you going to sell the home to?
The repairs and improvements you make to the house should be made with them in mind.
For example, an older couple might focus on accessibility and a large family might want a mudroom or an extra bathroom.
Think about the things that will “wow” your likely buyers and add those features that make the buyer feel as if the home was designed just for them and their needs.
Move Quickly
When flipping a home, your greatest enemy is time. In order to see the returns, your mission is to resell the home as rapidly as humanly possible. The less time you are paying interest on borrowed money, the more return you get on your investment. Goes without saying, the less time you have the home the less time you are paying insurance, taxes, interest, and utilities.
Not preparing for this in advance is a mistake. I have seen many people blow their timelines and underestimate carrying costs…. and then watch their profits vanish right before their eyes. If you want to Flip a House in Fort Wayne you have to pay attention to these details closely.
You should always strive to do an amazing job upgrading and repairing the home, but make sure you are working with the correct people so you can get the job done sooner rather than later.