Are you ready to flip a house, but you’re not sure how to find one? This article is for you. There are many different ways to find houses to flip. Narrowing down 1-2 strategies and consistency will determine success.
The following seven tips I have used and recommend to anyone who is getting started or streamlining their existing business. You are sure to find the properties that fit your vision by getting clear on what you want and following these tips to get as many properties on your radar as possible.
Tip #1: Get an Agent
If you’re new, you might want to or even be convinced you need to do everything independently. Instead of doing it all, I recommend taking advantage of as many tools and experts as possible.
Seeking out a vetted real estate agent who may have access to listings you don’t will open doors that can save you time and money. Additionally, the more sets of eyes you have keeping a lookout for your ideal listing, the better since homes are typically snatched up quickly. You can also utilize your agent in the negotiation process.
Tip #2: MLS
“MLS” is an acronym for multiple listing services. As mentioned in tip #1, real estate agents can be privy to listings you’re not, many of which are from the MLS.
Don’t be afraid of the MLS. It’s a myth that you can’t find deals there. Most of my projects over the past 15 years have been from the MLS. It is the largest source of homes and when sellers are motivated they are willing to negotiate.
The MLS is also the most utilized platform for sellers. When people inherit houses or have a problem renting properties, they often look to a local realtor to help them solve that problem, which is excellent for people looking to buy less-than-perfect properties.
Not all houses on the MLS are retail buyer ready, and the longer they sit, the better opportunity you may have to negotiate the right flip price.
Tip #3: Connect with Wholesalers
Another way to secure a house to flip is by connecting with wholesalers. A wholesaler finds real estate deals and investors, like house flippers. Usually, the wholesaler never buys the property. Instead, a wholesaler will sell the contract. Wholesalers will usually not make any changes to the property, and buyers will have little opportunity to inspect and decide.
Once the wholesaler gets a home under contract with a seller, they send the deal to a list of buyers or investors. This is why connecting with wholesalers is beneficial for you, you can land yourself on the list of multiple wholesalers.
There are pros and cons to this approach. For example, the house is sold as-is and no repairs will be made. On the other hand, buying from a wholesaler is a great way to keep getting new opportunities.
Tip #4: Real Estate Investment Groups
Real estate investment groups can be found online and in person. These groups are great for networking, learning, and staying accountable to your business. Check out groups on Facebook, LinkedIn, and other apps and websites.
Tip #5: Direct Marketing
Direct marketing is marketing that goes directly to the ideal customer. Examples of this marketing are postcards, flyers, and newsletters. The difference between direct marketing and other forms of marketing is that the marketing done this way communication goes directly to each customer.
Direct marketing is not recommended if you don’t have the time or capital to manage and commit to a consistent strategy.
Tip #6: Drive in a Specific Location
I have mentioned the importance and benefits of identifying a specific location in previous posts and podcasts. Once you have found a location that meets your desires, I recommend driving around that location and keeping an eye out for homes.
You might also make connections in the area and spread the word of your interest to neighbors. The location you choose should be one that makes sense to your vision, and financials. Finding a property that has great comps and is or is soon to be in a “hot market” will get you on the right track.
Determine who lives in the area, who comes to that area, and what is around the neighborhood (for example, schools or a company that hires many out of state employees).
Tip #7: Look at Comparable Sales
Comparing recent comps is in the same vein as choosing a location. If you find a home you like, be sure the comps give you a clear picture of what to expect in the offer you’ll make and the projected profit.
Comps (comparisons) in the neighborhood will be the houses closest to the property you’re looking at. Meaning a similar number of rooms, bathrooms, and square footage.
Now, Get Out There!
By learning and executing these seven tips consistently, you will be guaranteed to find some potential properties. With the right action your success is inevitable.
Ready to get started in flipping (or refine your existing flip business)?
Buy, Renovate and Sell successfully with my Find Your Flip program. From the comfort of your home, tour three properties with me and discover what I’m looking for when deciding on a flip project. A great option that has helped people kick off their businesses successfully with proven tips and a wealth of information.
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