6 Tips On Finding A Property To Fix & Flip

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6 Tips On Finding A Property To Fix & Flip

Fixing and flipping properties can be a lucrative real estate investment strategy, wherein an investor purchases a property in need of repairs, completes the repairs and then resells the property at a profit. As these repairs and renovations may not take too long, depending on the scope of refurbishment and repair, this approach can lead to quicker returns for an investor than other strategies.

Once investors have understood the risks and benefits associated with the fix and flip approach, they would then need to start the process by seeking a property that aligns with their budget and plans to invest in. There are two main categories for finding properties to flip, on-market properties and off-market properties.

 

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On-market deals – these are properties that are listed for sale and can be found publicly on sites, in newspapers with agents, and more. There is more competition in buying these properties as they are easily found.

Off-market deals are properties that are not listed publicly but usually have private sellers looking to sell. Due to the private nature of the sale opportunity, there is limited competition for these properties.

Finding the best property requires careful consideration, so we’ve listed 6 avenues to help in your search.

 

Table Of Content:

  1. Build up a network
  2. Search online and offline listings
  3. Canvas the local area
  4. Word of mouth and referrals from other investors
  5. Attend auctions
  6. Social media

  1. Build up a network

Building a solid network of real estate agents, wholesalers, and builders can help you discover both on-property and off-property deals. Agents and wholesalers are the traditional go-to source for new property deals. However, local contractors could have the latest scoop on distressed properties or a project that has stalled for any reason. They are a great source of off-market deals. Once you have a database of agents and builders, it’s only a matter of reaching out to them periodically and asking for a deal.

 

  1. Search online and offline listings

Numerous online platforms allow users to search based on various filters, making it easy to find a property in a particular location or at a specific price point. This is one of the most common ways for investors to identify properties. Some platforms contain statistical data on the investment history, which can help investors to identify good deals and upcoming trends.

Additionally, you may find properties in local newspapers or similar publications not published online. Taking the time to browse active listings daily is a key part of discovering new, hot deals.

Finding pre-foreclosure listings online can be another way to get ahead of the curve and find new listings before they go to auction.

 

  1. Canvas the local area

Sometimes an effective way to discover off-market deals is to drive around your target area and search for “For Sale” or “For Lease” signs. You could also look at properties in a state of disrepair and reach out directly to them, offering them an opportunity to offload their property. Another way to reach out to a mass audience is to use a direct mail campaign targeting the specific location you are interested in. The response rates may not be very high, but sometimes you may reach a motivated seller who has no idea how to go about selling their property. Be aware that, depending on the state, direct mail campaigns may not be legal.

 

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  1. Word of mouth and referrals from other investors

Other investors may also have their own databases of properties that they refer to and update from time to time. It is always a good point to keep your ear to the ground at investor conferences or meetups to try and discover new deals.

 

  1. Attend auctions

Foreclosure auctions can be a great way to find distressed properties, as many of the properties have been abandoned due to eviction. In many cases, these properties would not have been appropriately maintained. You can also attend delinquent tax auctions.

  1. Social media

Though not a formal listing website, you can find groups on social media focused on real estate investment. You can find new deals that may not be listed publicly anywhere else and you also can reach out directly to the seller in a convenient manner. If you are  particularly keen on finding properties in certain areas, you could run ads online as well, stating your interest in finding properties to invest in

 

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Conclusion

While it can be a challenge to find the best deals to invest in to flip, with a bit of patience and effort to try a variety of avenues, you are sure to happen upon a great deal. Always remember that after finding the deal you’re interested in, work out a clear feasibility report to identify the costs of investing, fixing and flipping and see if the potential profit comfortably exceeds the cost of investment. 

If the feasibility report looks profitable, and you’re looking to get into fix and flipping, a good starting point is to secure funding for your investment. Our team at RE Investor News specializes in providing financing for real estate investments, so contact us now for more information. 

 

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