Posts

image of fix and flip for sale

How to Market Your Fix & Flip to Sell Fast!

You’ve got your fix and flipped all fixed — so what about the flip? With a fix and flip, you want to sell as fast as possible. But that’s the rub, isn’t it? How do you sell fast? You can’t control the market. But you can control a lot of elements of your listing.

1. Price your fix and flip properly.

The worst thing that can kill a fix and flip is pricing it too high. Look at the comparable properties and think about your financial situation. If you’re going to be losing a lot of money holding onto the property for an extra couple of months, it may be better to discount the property now and sell it right away. A lot of fast-talking isn’t going to make up for the fact that you’ve priced yourself out of the market. And even a smooth operator isn’t going to be able to defeat most bank appraisals. Price correctly and fight less.

Of course, there’s always the chance someone will fall in love with a property priced over the market; but that’s a gamble. It’s best used when a property has something very unique about it.

2. Use your media wisely.

Video walkthroughs are practically expected now. Spend the time to get a professional photographer and videographer. Have them do video walkthroughs or even 3D walkthroughs. Stage the property nicely. Many people look online before buying a home. A lot of them aren’t even using a real estate agent; they just want to contact you directly after seeing the home. Don’t bother trying to obscure things about the property, such as making it look bigger with a fish-eye lens; that’s a waste of your time and theirs. You want the property to shine, not be misrepresented.

3. Invest in content marketing.

A blog and social media account is a great way to start reaching out to people. People who are looking to purchase a home in a year might follow you today, but that can secure a sale in a year. The more people you have exposure to, the more likely you already have a buyer watching. And content marketing pays for itself over time; though it may take some time and money to build it up now, it’s going to start bringing you in more people as you scale.

4. Build your following.

The more followers you have, the more exposure you have. A lot of people ignore followers because it’s not likely that they’re going to build a house. But build a following of real estate agents and professionals, and you’ll be in direct contact with people who are looking to buy properties. You can network with real estate professionals in your area and find out more about what their clients are looking for. And that’s only going to help you in future, because it also means that your renovations are going to be more applicable to the desires of the market. The more you can connect with people and interact with them, the more ammunition you’ll have.

What about showings? The truth is that open houses and scheduled showings really don’t matter as much as they once did. Often, people already kind of know what property they want (from all their research online) before they even take a look at it. So, don’t rely on the traditional methods to help you sell your fix and flip. You’ll need to be using the new media and reaching out to a broader audience if you want to sell.

Unprofitable Flips Happen! But How Do You Come Back?

Fix and flip opportunities have become more popular, allowing individuals to spend less on real estate investments, fix the issues with the home and then sell it for a profit. However, flipping houses isn’t always as easy as it may seem, especially if you’re a fan of the house flipping reality shows. While it can be an excellent way to make money on real estate investments if you have the right experience, it’s also easy to lose money on the process, especially if the home ends up requiring more work than you initially calculated or it takes longer than expected. The good news is there are ways you can recover from an unprofitable flipping experience. The following tips will help you make better decisions the next time around.

Watch the Market

The real estate market is constantly changing, and it’s best to keep a close eye on these changes to ensure you make the wisest investments. Talking with local realtors about demand, pricing and other factors can help you better gauge the best options for your next flip. Also, pay attention to the time of year. Winter is a lower time for sales in general.

Avoid Overpaying

It’s easy to make a mistake and pay too much for a property, dooming your success from the start. For real estate investors who flip property, evaluate the after repair value of the home and work your way backwards. Deduct the amount you expect to pay on repairs and renovations to give you an idea of the highest amount you should pay for the home. Checking the MLS for comparable homes in your market area can help you get a clear picture of how much you can expect to sell the home for when you’re done fixing it up. Don’t hesitate to get multiple quotes.

Expect the Unexpected

It’s rare to complete a home renovation without a few unexpected surprises along the way. When you plan for these surprises, you will reduce those expenses that can make your flip unprofitable. In addition, only fix what’s necessary to turn a profit on the property. Repair anything that’s broken, update anything outdated and choose one or two elements to splurge on to make the property more attractive to buyers. Don’t focus on making the house perfect. Instead, do just enough to make the home appealing while turning a profit.

Work with a Reliable Contractor

One of the biggest problems house flippers experience is delays in the project due to the contractors they hire. Only work with reputable contractors who have a good track record for staying on schedule. Get referrals from trusted sources and others who work in the industry. If a contractor isn’t meeting your expectations, make a change early in the project, rather than giving multiple chances, only to find yourself scrambling to meet your deadlines.

Stage the Property

When you’re ready to sell, staging the property can be the best way to sell the home for a fair price as quickly as possible. While home buyers like to be able to visualize their own furniture in a space, that can be challenging if you’re showing off an empty property. The good news is you only need minimal furnishings to provide the desired effect. Even though staging isn’t necessarily a cheap option, it’s a necessary step to help potential buyers focus on what the home can provide them.

When you learn to accurately value a property and minimize your costs without sacrificing quality workmanship, you will soon find these real estate investments more profitable.

What House Flipping Mistakes Are Costing You Money?

According to a study compiled by ATTOM DATA SOLUTIONS, the house flipping report released in 2020 showed the highest rise in the industry since the second quarter of 2006. As more and more entrepreneurial-minded investors turn to house flipping to pave their way toward financial freedom, it becomes increasingly important to avoid some of the most common house flipping mistakes.

We’ve compiled four key house flipping mistakes that fix-and-flip enthusiasts around the country are commonly falling prey to. With knowledge comes power as well as a larger Return-on-Investment!

Understand Your Budget + Renovation Requirements

First and foremost, house flippers need to approach each project with the right mindset by understanding their budget as well as the renovation requirements in front of them. A common mishap that newcomers and veterans alike will experience, underestimating your renovation budget can lead to a loss on your property and a blow to your morale.

Work with a budget-repair worksheet to properly track the necessary renovations for the flip to become successful. Consider hiring a professional home inspector to look over the property for the most accurate information.

Common Ways to Blow a Budget: A Leaky Foundation, Termite Infestation, Asbestos.

Avoid Overpaying For a Property You ‘Like’

House flipping professionals need to quickly learn to divorce their feelings from their work. Buying homes can become addictive, and it is easy to create an attachment to them. However, these attachments can hurt our bottom line by influencing our willingness to overpay for a property that we enjoy.

Aspiring house flipping professionals will learn early on to avoid letting emotions cloud their judgement. Stick to raw numbers offered by appraisers and home inspectors. There are always new opportunities on the horizon so long as we are smart with our investments.

Lackluster Property Location

So you’ve found a gorgeous home with pristine wooden floors, an extra bathroom, and a sprawling backyard. The only problem? It’s in the middle of an area that is seeing depreciating home prices. The wrong location can quickly derail a property investment. Before signing on the dotted line regarding a property purchase, make sure to take the surrounding areas into account.

Talk with a realtor or search up comparable sales in the area to see how much a property is being flipped for.  Look at how long houses sit on the market, how close the nearest grocery store is, and the proximity that a home is in relation to a school. Every little thing matters.

Avoid ‘Over Improving’ a House Flip

Finally, house flipping pros need to learn early on that they can’t over-improve every property they invest in. Over-improving properties can include adding amenities, upgrades, and materials that don’t mesh with the value of the home.

Instead of focusing on flourishes of wealth, make sure your rehab has all the necessities upgraded to compliance with modern standards. An improved AC system will sell your home faster than a granite countertop.

Budget For Success With a Loan From Hard Money Lenders, AZ

When it comes time to find the hard money loan for your next house flipping project, make sure to turn to a team that you can trust to get the job done right. Hard Money Lenders AZ is the top-rated Arizona hard money lender on Google and the #1 destination for Arizona-based fix-and-flip housing projects.

Contact Hanson Capital at your convenience on their 24/7 line to get funded, today!

image of house under renovation

Flipping Homes in Smaller Towns vs. Larger Markets

A successful home flip generally starts with finding the property with the best potential in the best location. However, a home with an excellent location doesn’t always have to be in a bustling downtown area or a major city. In fact, there can be many benefits to flipping a home in a smaller town rather than in a larger market.

By having a better understanding of these benefits and some other special considerations, you can ultimately make the smartest choice for your next flip.

Greater Affordability

When you’re shopping for fix-and-flip properties in busy markets (such as in major cities), there’s always going to be a lot of competition. This is because in general, the supply of big-city flipping properties is a lot smaller than the demand. Unfortunately, this greater competition also drives up prices. And even if you have the budget to compete with other investors, you could still end up falling short.

Flip properties in smaller towns, on the other hand, tend to be more affordably priced and have significantly less competition. As a result, you can stretch your investment budget even further.

Fewer Zoning Restrictions

Compared to properties in larger cities, homes in small towns also tend to have fewer (and less strict) zoning restrictions. This can make fixing up and renovating a property much easier on you and your contractors. You may have fewer hoops to jump through and more freedom to do what you want with the property, which may make it easier to sell.

Properties in big cities, on the other hand, are often under strict zoning and permitting restrictions that can really hinder your creativity.

Low Crime Rates

While it’s true that many buyers want to live in the city, the reality is that an increasing number of today’s home buyers actually prefer the quieter suburbs. This can be due to any number of reasons, but statistically lower crime rates in smaller towns are probably among the most compelling.

Other Considerations

If you’re thinking about buying a property to flip in a smaller community, there are some things to keep in mind. For starters, be prepared for the possibility that the home may sit on the market for a bit longer than it would in a major city (and plan accordingly for this).

To make your property as marketable as possible, shop for homes that are located near amenities such as dining, shopping, schools, and parks. These kinds of properties will generally have a greater demand than homes that are farther out in more rural areas.

Looking for a Hard Money Loan?

Once you’ve found the right property for your next flip, make sure you have a hard money lender you can trust for a seamless purchase and closing. At Hard Money Lenders Arizona, we specialize in helping investors like you fund your real estate flip projects. Contact us today to learn more about our services and what our hard-working team can do for you!

5 Myths about Phoenix Hard Money Lenders

Sometimes, a traditional bank cannot meet all of your financial needs. Perhaps your credit isn’t in the best shape, or you already have a loan through your regular bank. No matter the reason behind a bank not being the best choice for accessing the funds you are in need of, a hard lender can often be a better option. And even though you may hesitate at first to borrow from a hard lender, you should be aware that not all of the bad things you’ve heard about these lenders are true. Let’s take a quick look at five myths related to hard lenders and why you shouldn’t fall for them.

Myth #1: Hard lenders only provide money for commercial properties

Sure, a commercial property can access funds through a hard lender, but this isn’t the only way in which the money can be used. In fact, there are many hard lenders that will provide single families with access to a loan so they can purchase a residential home. In fact, even if you have recently gone through a foreclosure yet have equity you can access through other assets, a hard lender may be very suitable for purchasing another home.

Myth #2: There are no reputable hard lenders

A reputable hard lender can be found just about anywhere, you just have to do your research. Sure, there are lots of hard lenders out there that aren’t reputable, but if you search in the right places, reputable lenders are easy to come by. One of the best places to start your search is through a trustworthy real estate agency in your area.

Myth #3: Hard lenders always have high interest rates

You may not be able to secure a loan through a hard lender with an interest rate as low as what a traditional bank can give you one for, but you can still avoid sky high interest rates. In fact, many hard lenders have loans with an interest rate of only about six to seven percent higher than what you can get a loan for at a bank. When searching for the best rate, make sure to shop for a hard lender in an area with lots of hard lending competition; this helps keep rates low.

Myth #4: Hard lenders give you access to what the collateral is worth

As you shop for a loan through a hard lender, remember that these loans are considered risky. Because of this, whatever collateral you are using, you will likely be able to access up to about 65 to 75 percent of its worth.

Myth #5: All hard lenders are shady

This simply isn’t true. Hard lenders want to collect the money that they lend out, and they want to provide affordable loans to good people. If you have the financial responsibility to meet the terms of your loan, you shouldn’t have any problem with the hard lender you access funds through.

Fix and Flip Your Property with a Hard Money Lender

The concept of the “fix and flip” property loan is one that has grown substantially in the past few years. This is because more and more people are looking to invest in real estate and take advantage of the additional income opportunities this provides. However, these loans are different than the ones given when a property is bought with the intention of selling it one day.

Understanding Fix and Flip Loans

A fix and flip loan mean that the property that is being bought is typically distressed or run down. The investor is purchasing it with the intention of renovating it and then selling the property for a profit.  The lenders providing these loans are at somewhat of a higher risk, since there’s no guarantee the property will sell for a profit, but there are more and more lenders coming into this space due to the demand that is now there.

Finding a Fix and Flip Loan

It can be extremely challenging to get funding for a fix and flip property the traditional way. Also, paying for this type of property out of your own pocket is also pretty risky. The majority of banks aren’t going to provide any type of long-term financing option for fix and flips, nor will they provide short term loans because the returns aren’t very good. The majority of fix and flip properties are sold within 12 months or so of being sold. As a result, a hard money lender may be the best option for obtaining the funding needed to purchase the property in question.

Why Use a Hard Money Lender for a Fix and Flip Loan?

The fact is, hard money loans offer competitive rates. Even better, there aren’t any requirements regarding bank statements, tax returns or a person’s credit score. AS a result, the company is able to help the investor with their fix and flip project.

Finding a Hard Money Lender

In some cases, the real challenge is finding the right hard money lender. Not all of these service providers are created equal and it is necessary for you to take your time to find a reputable company to work with. This is the only way that you can feel confident you are protecting the investment you have made.

If you are thinking about seeking out a fix and flip loan, then don’t rule out the possibility of working with a hard money lender. The fact is, these companies make it easy for you to make the investment and then earn a profit. Just make sure to chose the right company to work with before moving forward with the project at hand.