Purchasing a “fixer-upper” home as an investment can be quite lucrative, and success if often based on finding a property that can quickly be fixed, updated, and then flipped. The most important factor in this equation, however, is timing. Additionally, successful investors need to have an ability (learned or natural) to spot a good deal with a solid "After Repair Value", or ARV--or have someone on your team that can do so.
Once a deal is found and your contractors begin construction and the rehabilitation process, you need to make sure they are working according to timelines, within budget, that the quality of work is acceptable, and within area codes. Then you will be able to put the house on the market and sell it (hopefully) for a profit. But before this whole process can take place, you have to find a deal. And as we said before, the most important factor in this industry is timing. So how do you make sure that you have access to the best deals?
How to Move Fast and Get a Deal
- Wholesalers - As you begin, we recommend that you get on as many wholesaler lists as possible. When you are first starting out, it helps to expose yourself to as many potential deals as possible.
- Hard Money Lenders - Get pre-approved with a hard money lender so that when you do find a good deal, you will have the confidence and ability to make a cash offer on the spot and lock down the deal. Remember, the good ones don’t last.
- Keep a Log - As you gain experience keep a log of good and bad wholesalers. After you’ve seen enough deals you will know who puts out good deals and who puts out bad ones. This will enable you to quickly focus in on the deals that come from the “good” wholesalers and you can delete those from bad wholesalers, thus saving you time.
This type of real estate investing for quick resale is a great opportunity for many people no matter what your experience level is. Consider a trusted and reliable hard money lender that will look out for your bottom-line in addition their own. Contact Catalyst Funding to build a lasting, mutual relationship in real estate resale investing by calling 832.648.3626. You can also fill out our easy-to-use loan application form to get pre-approved.