We believe that engaging with real estate industry experts will help you to learn about the fix & flip industry. Here are some sources to help you locate the best properties and make smart decisions when you choose to invest in a property.
Joining Real Estate Investment Groups
Real Estate Investment Groups (REIG), according to Investopedia, either build or buy properties and sell them to investors as rental properties.
You should join real estate investment groups which offer you opportunities to study the industry and interact with experienced investors. National REIG’s can help you to understand federal laws and national trends.
You should also look at local REIG’s to learn about your target areas and their unique neighborhoods.
Join Real Estate Forums
Online real estate forums provide you with opportunities to ask questions and receive answers from experts.
Sources for Finding Fix & Flip Properties
After learning from fix & flip experts, you will be ready to move onto using sources to find them which include:
Buying distressed homes at an auction provides you with opportunities to purchase them at lower prices than market value. If you want to pay for your purchase in cash, foreclosure auctions (bankruptcy, income tax, property tax, etc.), sheriff’s sales, estate sales, HUD homes, and private auctions are ideal for you.
Most counties publish foreclosure auction lists weeks in advance of the auction. This gives you time to research the property and its neighborhood. Be aware you may not be able to actually inspect the property inside. But, you can view the property from the street and compare it with the neighborhood.
Avoid getting carried away with the bidding and stick to your pre-auction analysis. Many auctions require a 5- to 10-percent refundable deposit of the minimum auction price before bidding. If you win the bid, you may be required to settle the balance owed within 30 days.
Every state has their own procedures which you must learn before bidding. Financing is generally not available and requires sufficient cash to finalize the closing.
Classified Ads for Homes
Don’t forget about online classified ads.
The popularity of online searches for real estate properties far exceeds print newspaper classified ads. According to one web marketing study, 100% of all U.S. consumers looking to purchase real estate use the internet to begin their search. Only 28% read print newspaper ads.
According to Inman, the other most popular online platforms for real estate ads include:
- Zillow with over 44 million views per month;
- Trulia with over 33 million views per month; and
- Realtor.com with over 29 million views per month.
You may have never heard about wholesalers. According to Investopedia, wholesalers specialize in finding rehab properties, contracting with their owners, and locating a buyer who can fix & flip the properties.
When you work with a wholesaler, the existing contract with the owner is simply assigned to you as the buyer. Expect a wholesaler markup for acting as the middleman.
While not being the most cost-effective manner of buying rehab properties, time efficiency and money saved in the long run may make them attractive investments for you.
Multiple Listing Services (MLS)
A big benefit working with real estate agents is access to their MLS. Every real estate broker (and their agents) uses a local Multiple Listing Service (MLS).
According to the National Association of Realtors (NAR), established in 1907, the MLS is a private database where their membership lists properties for sale while other members find buyers. There are over 900 local MLS systems in the U.S.
A typical MLS includes homes, condominium apartments, and multi-family (duplexes, triplexes, etc.) properties. The beauty of an MLS database is the ability to filter buyers’ criteria amongst numerous options. These often include nearby foreclosures.
However, if you want to do your own research on MLS listings online, options exist including:
- Realtor.com includes some MLS systems properties, but only offers you basic information along with the listing broker’s phone number for follow-up.
- ZipRealty.com (now called ZapLabs) offers MLS listings with more details than Realtor.com including whether the home is REO or a short sale. It also provides you with a pricing history of specific homes which helps you to negotiate a lower price.
Specialized Agents for Fix & Flip Properties
Like doctors, many real estate agents specialize in one area of their profession.
Find an experienced real estate agent specializing in fix & flip properties. The agent can save you a lot of time by using your criteria to filter all MLS listings. In addition, the agent can provide you with useful advice regarding the neighborhood and little-known tips to save you money.
Also, locate an agent working with Real Estate Owned (REO) lender held properties. Most REO homes went through foreclosure and possible evictions. Don’t expect the prior occupants to have taken care of the home. However, neglected homes offer lower prices than their neighbors making them perfect for a fix & flip.
Financing A Fix and Flip Property
While all cash auctions do not qualify for financing, other fix & flip properties do.
Once you find an ideal fix & flip home, it’s time to think about your financing options. Our Lafayette Lending LLC division offers ideal financing options for fix and flip single family homes.
Fix & Flip Resources
Finding fix & flip property leads require you to become active with real estate groups and forums to learn the industry.
Sources for finding fix & flip properties include:
- Auctions (if you have cash);
- Classified Ads online;
- MLS listings through real estate agents and specialized websites; and
- REO Agents specializing in fix & flip properties.
Contact Us after finding your ideal home for a fast Fix & Flip Loan for family homes up to 4 units.