With the changes that are still to come in many areas of our world, it is difficult to know how everything will shake out. I am an advocate of continuing to move forward as well as you are able. For those businesses that are still able to work, we cannot stop because there is uncertainty. In all honesty, I have seen several investors say “we are stopping everything” and I have heard others say “I am getting rid of everything and going to sit on the sidelines.” I have also heard “cash is king.” All of this can cause anxiety in anyone but especially if you are wanting to get started it can be confusing which is why I wanted to share some insights with you on what has changed recently.
I have shared the fact before that from the time I actually decided to buy a house to flip and the time I got my first flip house under contract it was nearly 9 months. That is why no matter what is happening right now it is still the right time for you to be learning and getting ready to purchase a flip.
There was a call with several real estate investors, primarily flippers and wholesalers on it last week and we were discussing the state of the market. These are people from all over the US and there were a few common themes that I thought would be helpful to share.
1. Sellers motivation has increased
Sellers who were used to having 20 postcards sent to them with offers to buy their house are no longer receiving. Investors who have frozen their businesses are no longer able to help homeowners. At the same time, sellers who have a problem or unwanted homes still need an option to sell. Many buyers are no longer wanting to see houses and sellers don’t want a lot of traffic in their homes especially if it’s their primary residence.
2. Contractor availability has changed
Many contractors had work scheduled for homeowners but now that many states are asking for people to stay home, jobs have been canceled. The general availability has changed. As a house flipper, this means you may have people available for jobs now. Take the opportunity to bring in crews and treat them well so they will be a resource in the future for your projects too.
3. Lending options have changed
Some lenders have changed the terms of their lending. This doesn’t mean that there aren’t some great options, it just means that you need to check and see which ones will work for you. Now is the perfect time to connect with smaller local banks and hard money lenders if those types of funding are on your radar.
Remember, working on your flipping business now doesn’t mean you are going out and buying 10 houses tomorrow. If you are still wanting to flip a house you need to commit to that goal. Should circumstances require you to adjust, no problem. That’s part of the process in any market.
The goal is to grow and learn and build your knowledge and the only way that can happen is by taking action.
Want to buy a property and renovate it?
I have a freebie checklist that will help you — 8 Things I look for When Purchasing a Home. Just click here to download it.
Love before and afters?
Looking to buy a house to renovate? Check out the fixer upper checklist to help you find the perfect house.
For more inspiration for home renovations, follow me on Pinterest @thresholdhomesmn