Fix and flip projects have been on the rise over the past few years, drawing many new people to the property flipping arena. But before you start purchasing properties and tearing down walls, there are few things to know about how fix and flip projects work.
1. TV is not reality
There are numerous television shows about property flippers, and real life is very different. Most fix and flip projects can take weeks, if not months to complete. Professional property flippers learn about commercial real estate investing, and even take courses on how to flip houses and how to perform renovations.
2. You need to know your market
This is similar to the old adage of “Location! Location! Location!” Neighborhoods across the country are undergoing major changes. Once quiet and sparsely populated areas are experiencing a new influx of home buyers. What were once “dangerous” neighborhoods are slated for gentrification and beautification. Understanding what a location is like now, and knowing where it will be in the near future can help inform you about where to purchase properties in order to maximize your profits.
3. Time is of the essence
The faster a fix and flip project is completed, the quicker it can be listed and sold. This means property flippers need adequate financing to keep projects on track and prevent delays in construction. Additionally, property flippers should have contingency plans in case a project is delayed, or the market takes a turn before renovations are completed. Consider keeping a fix and rent or fix and hold strategy in your back pocket. If the market is not ideal for selling a property, it can always be rented out to generate revenue until you find a buyer.
Golden Century Lending provides financing for property flippers nationwide. From acquisitions to renovations, our team will provide the funding your need to complete your fix and flip projects quickly and efficiently so you can list or rent homes. Contact Golden Century Lending today and ask about our fix and flip financing programs.