The majority of questions that people have when they are starting something new are generally around the big “where to begin” question. What is great about that is there are many ways to answer. But let’s be honest, if you want to get started you don’t need 300 answers. You need to research just a few, small, specific items to take on so that you can start to build the momentum of buying that first flip.
As I was thinking about my own goals for this upcoming year, I was reminded that for almost 7 years, I had the same goal. To flip 12 houses in one year. Some years, I was barely half of that goal. But at least I had something to work towards. That got me thinking about starting out and what I would do if I was starting out today.
Research Your Market
There is so much free information on real estate that is available to everyone. Use websites like Redfin, Realtor.com, and Zillow. You can type in any city and state and begin looking at listings. Look at the active listings and see what the low and high price points are in an area. Check to see how many beds and baths are in them and what the finishes are like. You can also see by the number of views which houses are getting the most attention. Make sure to research not only at the active listings but the sold listings as well. Look at the houses that have been renovated (they usually say things like “complete renovation” or “updated”) and check the name of the realtor. There’s a very strong possibility that this agent is the same agent who wrote the purchase agreement when the investor purchased the property.
Look for a Realtor
Remember the market research from step 1? Well, it kind of ties into this step as well. If you are going to get comparable sales data from the multiple listing service, you are going to need an agent. Create a spreadsheet to log the information from your market research about the agents and the address of the renovated listing. Now when you find a property that you are interested in either seeing or getting comparable sales data for, you have your own database of potential agents to contact. Tip-reach out to the agent with either a phone call or an email for an introduction. This way when you are ready for those comps or want to schedule some showings they have already connected with you.
Find Lending Options
Always give yourself options. Even if you think you may not need them, it’s better to prepare, just in case. Connect with local lenders who have fix and flip lending programs. You would be surprised at how many banks are lending up to 80% of the purchase and renovation at an incredibly reasonable interest rate. Hard money lenders are always a great option as well. They can help with fix and flips as well as rental properties that may need a bit of work before they can be refinanced. Taking the time to meet people who work in this business full-time and know others who do the same is invaluable. I was connected with people who were instrumental in the course of my business because of a referral from a lender.
Information and education are so valuable, but knowledge won’t move you towards your goals. For that, you need action. These three steps are ideal options for anyone who has just an hour or two to start working on getting that first deal.
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