Fixing and flipping houses isn’t just a good way to make money. The best fix-and-flip businesses help communities to revitalize. They can improve neighborhoods by improving old, outdated, and poorly-maintained homes.
House flippers don’t just fix and flip to make money for themselves and investors. They can benefit the community as a whole by turning distressed homes into beautiful residences, opening up housing opportunities.
One of the keys to being a successful home flipper is looking for a seller that needs help to sell their home. Hard Money Lenders AZ cares about our community and we’ve put together some ways you can find houses to fix and flip. Read on to discover the strategies we’ve learned that can work for home flippers in Arizona, resulting in a “win-win” result for you and for home sellers and buyers.
7 Strategies to Find Houses to Fix and Flip
One of the most fundamental strategies in fixing and flipping homes is putting yourself in the shoes of the prospective home seller. What are their barriers and problems in selling their home? With over 19 years of experience in all aspects of real estate lending, Hard Money Lenders Arizona understands what home sellers need and how to locate them and their properties.
Stay Local in Your Neighborhood
An old-fashioned drive around the neighborhood can turn up For Sale By Owner (FSBO) signs. If you can locate an FSBO sign and offer a reasonable amount, you have found a flip house in one trip around the neighborhood.
Work With Local Professionals
If you only talk with other real estate pros, you’re missing out on ways to locate fix and flip homes. Attorneys, estate sale brokers and auctions, and senior living homes all come into contact with owners or families who want to sell. Networking among people who learn about properties before they go on the market is one of our top recommendations for locating properties to fix and flip.
Consider Targeted Advertising
If you’ve got a good website with a strong landing page, you can invest in advertising on Facebook or Google. You can pay for responsive, locally targeted ads that are aimed at people who are already researching bankruptcy and foreclosure.
Look for Already Foreclosed Properties
You can register for property auctions to find properties that have already been foreclosed and are offered for sale at auction. At Hard Money Lenders AZ, we have been familiar with Maricopa, Mohave, and other county Sheriff auctions as well as REO bank-owned properties. Another good source for foreclosed homes is Fannie Mae’s Home Path site. Working with a hard money lender like Hard Money Lenders AZ can give you the cash you need to participate in auctions.
Use Online Home Sales Listings: Zillow, Trulia
For a period of time, the largest online home listing site, Zillow, was directly buying properties that owners were putting on their platform as “for sale by owner.” But Zillow and other sites are no longer making cash offers for home sales, making it easier to locate potential properties through the FSBO functions on Zillow, Trulia, Redfin, and other similar sites.
Attract Sellers With SEO and Content Marketing
With a strong website and landing page, you can create blog posts that can attract people who want to sell their home for cash in your local area. If you can connect with local leads through search engine optimization (SEO), then you can receive a steady stream of home sellers.
Check Out Craigslist and Facebook Marketplace
Both Craigslist and Facebook Marketplace have properties for sale. Many people, especially in older age ranges, use these services to list items for sale, and homes are no exception. Some fix-and-flip home sellers may have had bad experiences with real estate brokers in the past, and may want to avoid real estate offices and salespeople. As a result, they will list their home for sale via Facebook Marketplace or Craigslist. A word of warning: be aware of home sales scams on these services. Be familiar with the property and ensure you are working with a legitimate seller before you commit any funds.
Which Fix and Flip Strategies Can Be Less Effective?
A lot of online articles about home fixing and flipping have outdated advice. Some of the recommended strategies can date from the days when real estate pros didn’t have the technology they have today. At Hard Money Lenders AZ, we’ve seen some of these methods lose effectiveness over time. Don’t invest a lot of your time in these home flipping strategies:
When a home has been for sale for a long time and the listing expires, there’s usually a good reason. Expired listings may have too many problems to qualify as good home flipping properties.
Looking through tax records to find homes that are delinquent can potentially locate some good fix and flip properties. But contacting owners about their property with taxes owed can seem pushy and aggressive, as well as more time-consuming than other strategies.
Paper Mailers and Letters
Sending a form letter to people who might want to sell their home used to be a reliable way to find sellers. But times have changed and according to New York University, over 5 million tons of junk mail end up in landfills every year. Paper mailers like postcards can be a good part of overall marketing campaigns for your business. Because prospective fix-and-flip home sellers have already decided they want to sell, blanket junk mailers are a waste of paper and money.
Frequently-Asked Questions About Fixing and Flipping Houses
Can I Make Money Flipping Houses?
Yes, as long as you follow the well-known 70% rule. Don’t purchase a home for more than 70% of the eventual price you think you can achieve after you fix the home.
How Do I Fund House Flipping?
The costs of finding, fixing, and flipping a home can be high. Whether you choose to work with a renovation lender, a traditional lender, or a hard money lender like Hard Money Lenders AZ, be sure you have enough financial cushion to cover your expenses if the property doesn’t sell immediately.