Flipping real estate has become a popular trend for investors across the country. However, not every flip goes to plan. In our latest post, we share 7 tips for a successful flip in Fort Myers!
Many people see the shows or hear stories from friends about people they know who flip homes for profit. However, with more competition than ever for these fix and flip homes, you will need to know what you are getting into first. By planning ahead, you can save yourself a lot of trouble down the road.
Tip #1: Start Saving Now
Securing loans for high-risk properties in Fort Myers can pose challenges, particularly for fixer-upper properties that are often in demand among cash buyers. In the realm of distressed property sales, cash offers tend to be highly attractive to sellers. To compete successfully, your offer must be not only competitive in terms of price but also reflect your ability to close the deal swiftly. In addition to funds for the property purchase, having capital for renovations and unforeseen expenses is crucial. It’s advisable to pad your rehab budget by 10-15% to ensure adequate coverage for unexpected costs during the improvement process.
Tip #2: Educate Yourself
Before diving into the purchase of the first fixer-upper you come across, it’s crucial to gather comprehensive information about both the property and the local market. Examining future development plans for the area, understanding market trends, exploring the range of property types nearby, and being aware of what’s currently selling and what’s not are essential steps. Factors such as average days until a property is closed should also be considered. Equipping yourself with extensive knowledge ensures that you make informed and intelligent decisions regarding your property investment.
Tip #3: Find A Mentor
Experience is invaluable, and seeking guidance from someone who has successfully navigated the process should be a top priority. If you’re new to flipping homes, consider offering to work for or with someone who has experience in the field. Many seasoned flippers and investors are open to sharing their insights and tips with those entering the business. Learning the ropes from a seasoned professional can provide invaluable knowledge and significantly enhance your understanding of the intricacies of property flipping.
Tip #4: Build a Team
There are many different professionals ultimately involved in the sale of a house. You will want to work with people you can trust and have built relationships with. You should find a great agent who can give you insight into the market when needed and possibly help you sell when the time comes. A great contractor who you can trust to make accurate estimates and be able to finish the job on time. You will want a title company who can move the process along quickly when it is time to sell.
Tip #5: Fix The Right Things
Many people will flip a house and spend too much time and money on the wrong things. The items you fix up should immediately bring value to the home. If the kitchen is older, but still in great shape, you aren’t going to see a huge return if you decide to gut and modernize it. It wouldn’t be worth the hassle or time.
Tip # 6: Time Is Of The Essence
Time is NOT on your side. Every day that you own the property, it is costing you money. From utility payments to property taxes to insurance to the loan payment. A good flipper knows that they need to sell the house as quickly as possible.
Tip #7: Don’t Get Attached
It’s an investment designed to sell quickly. Keep in mind, you aren’t ever going to live there. Many people get hung up on aesthetics or other details of the home. This can cost time and money. The idea is to add value to the house, and resell it quickly. Treat the entire process as a business and don’t get too attached to any property you buy.