Fixer-Upper, Property Brothers, Rehab Addict, etc. They make rehabbing and selling home for profit look easy. But is it?
Finding a fix and flip property that will make you money in the end can take considerable time and effort. The process can feel overwhelming. But there are things you can do to make everything go more quickly and smoothly. Here at Navigator Private Capital, we want to help you make your next project a success!
Find out more about our loan financing programs here.
The first step in the house flipping process is finding the right property but where to start? Sometimes it can feel like looking for a needle in a haystack.
But below are some suggestions to make your search more fruitful:
* The MLS (Multiple Listing Service) is your friend. If you have direct access to this listing of all available properties marketed by real estate agents, then use it. If not, consider contacting a realtor who specializes in REO properties (those owned by a lender). The realtor can help you locate up and coming neighborhoods, prepare a CMA (Comparative Market Analysis) and craft a competitive offer.
* Rather go it alone? There are numerous property listing sites such as Zillow, Redfin,and Realtor.com where folks can search on their own and potentially snag a deal. These sites are great for finding FSBOs and for identifying comparable homes for sale when estimating your ARV (after repair value). Additionally, internet lists such as BankForeclosedListings.com and BankForeclosureSale.com can be a treasure trove of distressed properties that just need a little love.
* Need advice or support along your journey? Seek out a local real estate investment group to talk to other house flippers, contractors, lenders, and other professionals who have the experience and know-how to provide wise counsel. The National Real Estate Investment Association can help you find local groups with meetings near you. It’s a great place to start and to network!
* Think about working with a wholesaler who is in the business of locating and purchasing properties and then selling them to flippers who complete the work and sell the property. The wholesaler serves as a middleman and receives a commission for their service. They are often well connected to realtors, brokers and other professionals within the rehab industry.
* If you are flush with cash, you may want to consider government foreclosure auctions. You should know that the terms generally require 10% of the purchase price upfront as a non-refundable cash deposit. There are additional risks involved with these auctions as buyers are not permitted to access the property before bidding and must forgo the usual home inspection.
Finding a viable property with sufficient upside potential is a good first step to a profitable renovation but making sure that you have financing lined up is crucial. Navigator Private Capital not only offers its borrowers flexible terms and competitive rates but also provides expert advice and support along the way. We consider your success to be our success.
Reach out to us at 443.603.0193 or via email at:
Tim Boord: tim@gonavcap.com
Rick Rall: rick@gonavcap.com