House flipping reached a fever pitch in 2021, when investors averaged $70,000 per property in profits. This generated lots of interest in this industry, which has saturated the market a bit.
Luckily, you can still turn a profit on house flipping in 2023, although it may not be as much as in 2021. However, if you work smartly, it won’t be impossible to break into this line of work.
The first step is to know where to find houses to flip. Making the right investments will be a game-changer.
Read on to find out how to find houses to flip so you can start this new venture.
Set Up a Business First
Technically, you don’t need to have an LLC or any other business structure to start flipping houses. You can do it as an individual, or you can choose to set up a sole proprietorship, S-corp, etc.
However, it’s a good idea to set up a business for house flipping. Most entrepreneurs opt for an LLC (limited liability company) because there are various tax benefits. For example, you’re not liable for the company’s debts and liabilities, plus there’s flexibility in how the profits and losses are distributed among the owners.
If this has you convinced that you should start an LLC, then have Business Anywhere take care of business registration for you. Our experts can save you time and money so your business is up and running before you know it.
Research the Market
House flipping can be risky if you don’t understand the market first. Going in blindly means you might purchase property that no one’s interested in, even if you fix it up fantastically.
It’s best if you familiarize yourself with the real estate market in the areas where you intend to flip houses. Look for locations with rising property values, strong demand, and favorable economic conditions. This trifecta will drastically raise your chances of success.
Define Your Criteria
After you’ve researched the market, you should determine the specific types of properties you want to flip. You’ll spread yourself too thin if you try to be a jack of all trades, so think carefully and play to your strengths.
Consider factors such as location, size, condition, and potential for improvement. Also, decide whether you prefer single-family homes, condos, or multi-unit properties. This will help you narrow down your options when searching for houses to flip.
Utilize Online Resources
To find properties in your target areas, browse real estate flipping websites, online marketplaces, and property listing platforms. Here’s a list of places you can start:
- Zillow
- Realtor.com
- Redfin
These sites can provide you with a wealth of information. In addition, you can filter properties based on your criteria, which will save you time.
Network With Real Estate Professionals
Networking is the key to succeeding in a career, and real estate is no exception. Here, it’s important to establish connections with real estate agents, brokers, wholesalers, and other professionals in the industry.
Let them know you’re interested in finding houses to flip. You never know if they have access to off-market deals or upcoming listings. If so, then you want to be the first to know.
Attend Auctions and Foreclosure Sales
Foreclosure auctions and bank-owned property sales in your local area are excellent places to find potential houses to flip. Often, there are distressed properties available at discounted prices.
You’ll have to pick and choose carefully, but if you’re lucky, you’ll find distressed properties that are in great condition. That way, you don’t have to spend too much money or time to fix it up before reselling.
Drive Around and Look for Distressed Properties
You won’t know what’s around unless you see it firsthand. If you’re wondering how to find cheap properties to flip, then one way to do so is to simply take a drive around local neighborhoods.
Look for signs of distressed properties; vacant houses, overgrown lawns, boarded-up windows, and “for sale by owner” signs can indicate potential opportunities. Take note of the addresses and contact information if there’s any, then get in these homeowners to open the conversation for sales.
Use Direct Mail Campaigns
For addresses that don’t have contact information, you can use a direct mail campaign. This enables you to take control, as you’ll reach out to homeowners who may be interested in selling their properties.
Consider sending letters or postcards to owners of older homes or properties in need of repair. Ask them to contact you if they want a quick sale and leave the ball in their court. If they don’t respond, don’t chase them up aggressively, as you’ll alienate entire neighborhoods.
Connect With Local Wholesalers
Wholesalers are people who specialize in finding distressed properties and selling them to investors. This can take a lot of hard work out of your hands, as you won’t have to spend time scouring the streets and websites for ideal properties.
You should reach out to local wholesalers and let them know you’re interested in purchasing homes to flip. They’ll take a fee, but this can be worth it if you want to save time and energy.
Be Patient and Persistent
Finding the best houses to flip won’t be easy, nor will it be fast. It’s essential to stay persistent and patient throughout the whole process.
Keep up with research and networking to broaden your horizons. And explore different avenues to uncover the best opportunities.
Knowing How to Find Houses to Flip Is Key
Most people don’t know how to find houses to flip, so it can be a huge undertaking. Not only do you have to know where to look, but you also need to understand the local market and network with the right people.
Once you’ve found a property and flipped it, repeating the process will be much easier the second time around. Before you know it, you’ll be flipping properties like a pro and making massive profits.
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