5 Best Home Flipping Tips for Real Estate Investors from Hard Money Lenders in Texas
Admin - Oct 28, 2016
Find a Good Location:
A buyer will be interested in a property located in a desirable neighborhood. Therefore, try to find property in those areas marked with….
- Rising real estate rates
- Low DOM (days on market) for the neighborhood, style and size of house
- Job possibilities
- Favorable Property Market
- City improvement and growth rate
- Being located in a good school district can increase demand
If your property meets the above mentioned requirements, chances are you find buyer easily and on the desired prices.
Stay Away from the Expensive Upgrades:
If the property is not high-end, you must not go overboard with the remodeling. The most expensive renovation works can affect your profits. Instead, you can use clever home staging tips with minor fixes and few touch ups on limited budget. However, unless you KNOW what you are doing in construction and truly buy where the numbers work, it is better to choose the property that won’t require big upgrades like new kitchen, or a reinstallation of electrical and plumbing systems.
Know Your Home buyers:
Knowing your home buyers is useful to renovate the property accordingly. For example, if you have property in a good school district, the majority of the home buyers might be young families. So consider what style of house they are looking for. Open concept? 4 Bedroom? Game room? You may like to invest in the bathroom remodeling to make it appealing for the kids. But these improvements may not work if you’ve to sell a home to retirees or seniors as they look for wider spaces, small stairways, light, maintenance free outdoor and an easy access from the street.
BEWARE of Functionally Obsolete Homes
I was talking with a Real Estate investor recently who was very discouraged as he had a house that had been on the market over a year and had not sold. I was shocked to hear that as the market he is in is a very HOT Real Estate market with a shortage of homes for sale. I said it’s a “sellers’ market,” why do you think the house has not sold. And he began to tell me that no one liked the floor plan. So, BEWARE that flow and floor plans do matter so when you are looking at houses from wholesalers, driving for dollars or however you find your investment properties, if the house doesn’t have a good floor plan…. ask yourself what is the cost to fix this? If the numbers don’t work, walk away now!
Your contractors can make or break you in this business. They are the key to your investment houses being profitable or running you out of the business. It’s important to interview many contractors, ask for references, if possible visit their job sites and inspect their work. Ask other investors for contractors that have done a good job for them. Get at least 3 bids for each item you need completed. If they are not around the same price get more bids until you have at least 3 contractors that you feel are qualified to do the work, will do a good job and prices are fair. Why 3 you ask? Well what if when you need the contractor to start working on your project Monday but he says “oh I am backed up for 3 weeks” or you have a contractor start the job and then realize this guy is just not going to work out. Have your backup contractors already interviewed and ready to go. This will help you get the project done quicker, which equals more profits in your pocket and quicker profits!
So, these are the suggestions from hard money lenders in Texas for real estate investors over home flipping. Consider these points and choose Loans 4 Investors to get finance for your fix and flips. We are the hard money lenders based in Texas and offers funds to real estate investors and builders for their projects.