Many people let a saturated market stop them from pursuing their dreams and starting a business. Regardless of the industry, the most critical part is not being discouraged and focusing on what you can control. When it comes to building a flipping business, you aren’t the first or the last to do it, but you can stand out in a good way.
We can’t control a lot about real estate, but there are three things, in particular, you can control that make a difference in the success of your flipping business. Those are where you’re buying, the quality you’re bringing, and the team you work with.
I will get into these a bit more and explain how you can leverage these three things you can control to build a flipping business that stands out in 2022 and beyond!
Buy in the Right Area
It is up to us as flippers to be looking in areas people want to live in. There are a few considerations here. The “right area” could depend on the individual market. You will need to do your research to figure out why people are in a specific area, and if it’s the area for you to zero in on.
I have experience with a few different kinds of areas. One community is desirable due to school districts, and get a lot of out-of-town relocations. Another is a community of older housing inventory where there is a lot of opportunity to renovate.
Getting to know the buyers and why an area is popular helps you choose the area that’s right for you. I don’t like to buy in areas that feel uncertain to me. If I don’t know what a buyer wants in an area, I don’t buy.
A few typical signs of a desirable area are proximity to schools, parks, transportation, and entertainment (as well as proximity to less desirable things in the neighborhood).
As I mentioned, doing research can tell you a lot. Here are a few things to consider when looking for the most desirable area to buy:
- Buyer demand
- Desired features of the area (schools, entertainment, transportation)
- Home value
- Low days on the market
- New projects or initiatives that buyers will appreciate
Quality of Your Flips
The next thing you can control about your flips are the finishes. What are the design choices you make? What are the things you’re adding to the spaces so that people are attracted to them? Are you meeting buyers’ expectations and needs?
The quality of your flip is heavily contingent on how many boxes you’re checking off for your buyers. You have to remember the widely-known expectations of buyers like square footage, ease of layout, upgrades, etc., and the expectations in your specific area. Take a look at comps, and listen to buyers! What are they saying?
Design decisions and finishes are the most obvious things you can choose that will make your property stand out and be more desirable.
Some of the most important finishes and renovations that will add value and help your flip stand out include:
- Bathroom renovations and new fixtures for hardware, flooring, lighting
- New paint
- Curb appeal and upgrades
- Energy efficiency and tech updates
- Added living space
Again, keep an eye on what people are buying in your area, and focus on meeting and exceeding those flips in terms of quality.
And finally, who are you working with? There is a lot to be said about the company you keep, especially in business. Your team should be appropriately vetted, collaborative, experienced, and have the same goal to stand out in the market.
Your team will be made up of several people. While many are handling paperwork and behind the scenes things, there are a few team members who make a difference in if and how your flip stands out.
These are your realtor, contractor, and stagers. If you’re not a licensed realtor, who is the realtor you’re working with? Are they helping you create standout opportunities in your flips? Are they marketing your flips in a way that allows people the chance to see the quality you bring?
Your contractors and stagers will help you to make the most of your flip and stand out. Be sure to outline your vision and only partner with experts who align with your goals and have the experience to help your flip and business stand out.
Standing Out in 2022
While things change every year in the market and trends, the best way to stay consistent in your business and continuously stand out is to take complete control of what you can control. When you focus your energy and attention on those areas, the things you can’t control are not as much of a struggle, and you’re able to weather the storm a bit more and continue strong through anything that comes in the way.
Want to buy a property and renovate it?
Get my checklist that will help you — 8 Things I look for When Purchasing a Home. Just click here to download it.
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