How to Find Fix and Flip Deals
How to Find Fix and Flip Deals
Fix and flip investing has long been a popular strategy for real estate investors for good reason. Done well, a fix and flip project can result in a sizeable profit margin. Whilst the renovation itself can go a long way to making you a tidy profit, the success of your project starts before that. One of the most important keys to success when flipping a property is how good of a deal you secured when you first purchased the property. As it stands, finding the most promising fixer uppers can also be the most difficult part of the project.
So where are the best places to look? Here are our top eight tips for finding a house to fix and flip.
1. Get to know the MLS. The Multiple Listing Service is a database that lists all properties for sale within a geographic area. The MLS is an easy way to find a property, no matter where you are, however it is only available to licensed realtors and attracts a monthly access fee. A pro tip when searching the MLS is to take note on how long the property has been listed for. If a property has been listed for a long time, the seller might be more eager to get rid of it, and will therefore consider lower offers. You may also find an expired listing that could present a great deal.
2. Conduct some online sleuthing. You may not be aware that sellers are allowed to post their properties on sites such as Zillow and Trulia before listing on the MLS. Therefore, an online search of classified sites might lead you to an off-market listing.
3. Scour public records. You could also search through government websites, courthouse records and local newspapers which may contain information regarding pre-foreclosures as well as short sales.
4. Network far and wide. Networking can go a long way to helping you secure deals, and there are many different people you should be networking with. For starters, you should network with real estate agents and attorneys in the areas you want to invest. They may be aware of off-market properties in your area and can give you a heads up if something promising comes along. To get started, ask your existing connections or attend local real estate meetings. You should also form relationships with contractors and builders who may possess a lot of knowledge on current property listings. Whenever you start work with someone new, make sure they know your goals and give them your contact information so they can reach out if they come across a potential deal. Additionally, it may pay to speak to people in the neighborhood you intend to invest and let them know what you’re looking for – you never know who might be the best direct private money lender to help you How to Find Fix and Flip Deals.
5. Market yourself online. You could promote yourself online with something as simple as your own website. Motivated sellers may be able to find you through your website and get in touch to let you know what they have on offer. Creating your own website can be easily done through platforms like Wix, Squarespace and WordPress. You could also create social media profiles on Facebook, Twitter or Instagram.
6. Run a direct mail marketing campaign. Another way to market yourself is through direct mail. To do this effectively, you’ll need to do some research into your target audience and who you intend to contact. For example, you could get in touch with owners whose listings have expired but houses haven’t sold, or with the owners of unoccupied homes.
7. Attend county courthouse auctions. Foreclosed properties can be auctioned off at county courthouses, so you may be able to find a good deal by attending county courthouse auctions. Be sure to do your homework before you go.
8. Partner with an agent. Working with an agent can be a great way to find houses to flip faster. Agents know the best places to look and are kept in the loop on available properties. They can also offer real estate investment advice based on their knowledge of the market. For an even more efficient way to find rehab properties, choose a real estate agent that specializes in real estate owned properties. REO properties are held by lenders or guarantors after a defaulted loan. These homes most likely weren’t taken good care of, and therefore are perfect for renovating and can be snapped up at lower purchase prices. It is also worth making sure whichever realtor you partner with has access to the MLS.
Whatever you’re looking for, there are many different places and ways to find a property worth flipping. If you’re ready to start looking for the top fix and flip hard money lenders nationwide, choose the right financing with RehabLend. Get in touch now