Flipping real estate is a growing form of investment. There is something alluring to purchasing property, renovating it, selling the property for a nice profit, and making enough from the sale to more than cover renovation expenses. You’ve set a budget and have a business plan and you’re ready to invest in a property… you can save time and money by working with We Buy Houses in Detroit for the best properties available in Detroit.
When you’re ready to flip your house, there are 6 things you should do for success.
So you’ve found your investment property and you’re ready to make an offer. By pre-arranging your financing, you will be ready to move at the pace of the market and won’t miss out on a great investment. Bridge loans work nicely for this sector of the market as they “fill in the gap” between more long term financing. Because you’re going to be flipping the property, consider these short term lines of credit. Be aware they do come with higher interest rates.
The number one thing that will flip property fast is to offer it for sale at an appropriate asking price. Spend some time and research on the recent comparable sales in the area. If you’re wisely working with professionals in the real estate industry through each step of the process, an experienced agent can be invaluable in assisting you with performing comps and moving your property quickly in Detroit. If your asking price is too high, buyers may believe you do not really want to sell your property. Offering a property for sale too far below market leads many buyers to believe there is something wrong.
Making affordable and necessary changes to the property will definitely help. Buyers imagine themselves and their family living in the house as it is; aesthetic upgrades and improvements help flip the property faster. Offering a unique feature in the property, such as a custom bar on the back porch, might help a buyer fall in love with the property and make an offer quickly and be willing to pay a higher price.
Open houses will help sell it fast. You or your real estate professional will encourage other local agents to visit the house in hopes that it will meet the criteria of one of their clients. If a real estate professional is out searching for client houses, this means that their clients are pre-approved and ready for a quick sale. Other potential buyers will also attend; however, some of them may not be pre-qualified or even able to obtain a loan.
You should continually strive to build your network. If you are an investor who flips properties, you most likely know other real estate professionals, or professionals of related fields, such as contractors, etc. Networking builds your business through word of mouth. Your contacts help by mentioning your property to their clients, especially if they mention that they are in the market for a new home.
Prepare a Proforma
For multi-family properties or even single-family, preparing a proforma for the property will be another tool to flip your property fast, especially if your property is multifamily because this is the most important part of an investment: the return on investment! Doing research of the rental market in the area will definitely be worth it, as a backup of your estimated rental amount. Investors will be able to run the numbers and determine if it meets their investment goals.