For Evelyn Oliva, her plan was to start small in house flipping. A tiny two-bedroom, 1-bath home that she would rehab to rent with a few upgrades.
However, her plans quickly changed when another property investor saw opportunity. The home was just minutes away from an up-and-coming, trendy neighborhood attracting lots of attention.
So construction began. 700 square foot was added. The kitchen expanded. A second bathroom created a true master bedroom suite. Modern colors, tile and cabinetry created a contemporary look throughout.
The Houston area bungalow was on the market for only one day. Even more astounding, Evelyn got four offers within 24 hours.
House Flipping with an Investor Mindset
What did Evelyn do right? Her lender and fellow property investor Jeff Johnson of Catalyst Funding in Houston says when Evelyn saw the potential, she tackled the project with an investor mindset. She set a goal, made calculations and had a plan for how to achieve success.
In real estate investing, the faster you can get the house on the market, the faster and more opportunity you have for profitable earnings. Evelyn got immediate offers by doing these four things right:
4 Things To Do To Flip a House Fast
- Be proactive and forward-thinking. Once you have a plan, lay out the job sequencing to keep the project moving. For example, Evelyn immediately applied for a city permit when she realized a power line would need to be moved. When it came time to do the work, she had a permit ready to go. By creating a job sequencing timeline, you can avoid stumbling blocks that slow down putting the house on the market.
- Add square footage that makes sense. Evaluate the logistics and return on investment before determining if an addition is needed. For Evelyn, the additional square footage easily fit in with the home design and property layout. It didn’t require a lot of plumbing or electrical relocation, therefore, keeping costs down. On paper, she could see the addition was a sound financial move.
- Improve a 2-1 to a 3-2. A two-bedroom, 1-bathroom home will always have a smaller pool of buyers. A quick way to open up your property’s buying potential is to construct or renovate rooms to add a bedroom and bathroom. A 3-2 home is perfect for families, young couples planning a family or single homeowners with a roommate.
- Surrounded yourself with knowledge. Don’t be afraid to network with others in the industry. Ask real estate agents, lenders, contractors and others in property investing for their tips on house flipping in the current market. It’s smart business to align yourself with others who know what they are doing and have already seen success.
Be Ready to Act Fast as a Property Investor
Most importantly, ensure your real estate plan includes exit strategies. If unexpected things pop up, you should have a Plan B and be prepared to shift as needed and stay on track to meet your financial goals.
Begin any investment opportunity by having your financing in-line. Find a hard money lender who specializes in property investing, understands your business plan and the real estate market in your area.
Hard money loans are typically the easiest and fastest way to secure financing for major renovations, quick fix and flips and other real estate investments.
Catalyst Funding is a hard money lender who can help build your real estate investment opportunities. With a background in fix and flip projects and other property investments, we can provide resources and guidance to help you through the entire process. We strive to be more than a lender!
For more information, contact Catalyst Funding online or call us at (832) 648-3626.