You are interested in getting into fixing and flipping properties, so now what? Where do you start, and what steps do you need to take throughout the process of becoming a property flipper? We’ve compiled a list to help you in your journey of flipping properties. Follow along as we walk you through each step of the process, from mortgage to drywall.
Know Your Budget
Budget… this is a big one! You are ready to buy a house, and you have some ideas in mind, but you have to know what you can spend. Analyze your financial situation and determine what you will be able to pay for a property, but remember, your budget should include the purchase price and the cost of the flip!
Understand Your Local Real Estate Market
You are about to buy a property! That is a big step. Before you begin to property shop, be aware of your local real-estate market. Is the market slow, staying steady, on the rise, or booming? Is there a large inventory in your area, or are you limited in the properties currently available for purchase? Knowing this before you begin shopping is crucial. When you are knowledgeable about the current market, you can better determine how to negotiate, how much power you have as a buyer, and how to approach your resale once you’ve completed the fix-and-flip project.
Be Knowledgeable about what Buyers Want
You are purchasing your property as a fix-and-flip. Therefore, you will be selling the property upon completion of the project. Do your research and have an understanding of what the buyers want. Is there a style of home that has been more popular in your area? How about the location? Are certain areas in more demand than others? These are all questions you should be asking yourself as you choose a fix-and-flip property because ideally, you need to create what buyers will want.
Get your Property Inspected
It is inspection time! You have found the property you want to fix-and-flip, and you’ve made your offer. Now it’s time for an inspection. The inspection is the time to figure out if there are any major issues with the property that will need to be addressed before taking ownership of the home. Should the inspection report come back with a problem, it is possible to negotiate repair into the contract. However, in some booming markets, properties are being sold as-is, and the buyer is responsible for repairing any issues. Keep this in mind as you refer back to your budget.
Get your Fix and Flip Loan from Lendmarq!
It’s time to get your loan. There’s no better way to start the process of loan acquisition than with a private lender. Lendmarq offers residential loans specifically for fix-and-flip projects where 90% of the purchase price and 100% of the renovation costs are covered. Our rates are as low as 7.49%. We can be your partner in the process of fixing and flipping properties. Contact us to purchase your fix-and-flip property.
Purchase a Home
You have found the property, made your offer, gotten it inspected, and acquired your loan. Now it’s time to make your purchase official. The next step is to close on your property so you can get started on your fix-and-flip. It’s that easy, and you’ve almost made it to the fun part of flipping the home.
Have a Rehab Plan
Before you get into the nitty-gritty of your fix-and-flip project, have a rehab plan! Ask yourself these questions to help you create your plan.
- What has to be done to this property?
- What projects are the most time-consuming?
- Where should the majority of your focus be?
- What style of homes is popular in the area of your fix and flip?
- What can I accomplish with my rehab budget?
Starting your fix-and-flip with a rehab plan in mind will simplify the process and make it more fun for you and your team.
Get to Renovating!
You made your rehab plan, and now it’s time for the fun part! Let’s flip this property! Create a home that is going to make a lasting first impression for buyers. Decide on all the details, from paint colors to lighting to cabinets to flooring. You can create a buyer’s dream. The brighter the home, the larger it will feel. If you’re working with a smaller home, try to brighten it up to make it feel more spacious. Kitchens are the focal point of each home. Creating an updated kitchen with detail and desirable features will help as you sell the property later on. Update the property, and bring your design to life.
List your Newly Renovated Home
The property is updated, and now it’s time to get it listed! Find a real estate agent that will be a good fit and work with them to determine your list price and get your property on the market. Once your property is on the market, let the showings begin!
Sell your Masterpiece to Create a Home for your Buyers
Once the showings begin, the offers will start rolling in. After you’ve received all of your offers, choose the one that will provide you with the greatest profit on your fix-and-flip project. It’s that easy! You put in all the work and created a beautiful property that your buyers will be able to call home!
Reap your Profits
Pat yourself on the back. You did it! You’ve accomplished all the steps on our list, from mortgage to drywall. Now it’s time to reap your profits. If fixing and flipping homes is what you like best, start at the top of this list and get started on your next property renovation.
Flipping properties is a lucrative business, but it sure is fun. The start of each project is like starting over with a blank canvas. What will you create next?
Contact Lendmarq to continue on your fix-and-flip journey, or if you’re new to the fix-and-flip game, we can help make the process an easy one.