Whether you’re a cash homebuyer, real estate broker, or just a fan of HGTV, digging the best way to flip houses can be fun. Especially if you’re not responsible for navigating those renovation surprises (there’s always at least one)!
At Stress Free Homebuyer, we have a long history of successful property flipping, thanks to years of experience and overcoming various challenges that can occur when working with distressed properties. For this blog, we’re excited to share the best way to flip a house, some of those common challenges when real estate flipping, strategies we use, and tips for reaching a successful outcome.
Why Property Flipping
Before jumping in, let’s start with the reason for as-is cash homebuyers and today’s real estate flipping phenomenon. Most of our clients come to us because they own a distressed property that they want to sell quickly. The home might have been due to a recent inheritance or a personal situation causing budget problems or foreclosure risk.
When someone is facing the loss of a home for any reason, it can be challenging to know what to do. There’s an urgency to sell and, most often, not a lot of cash to get the home in tip-top shape. In fact, damage, lack of maintenance, or even vacancy can frequently make a house ineligible for a traditional real estate sale.
That’s where as-is cash buyers who are experienced in flipping homes can be a great solution.
At Stress Free Homebuyer, we can close on a property in two weeks or less, and we have the team, tools, and know-how to do anything from repair minor damages to oversee major construction projects. In addition to helping our clients get out of a property and related financial concerns, we can create a home for a future family and often increase the value to the local neighborhood (by restoring a property that was in disrepair).
The Steps to a Successful Flip (Aka the best way to flip houses)
1. Finding A Property
Finding the right property is critical for success for an individual doing a one-off flip. For a professional cash buyer with an experienced team, finding the “perfect” property doesn’t have as many requirements. Typically, we must ensure that our client is a rightful owner and assess any legal holds the property may have.
2. Assessing The Value (or Potential)
Once we know that our client has a right to sell the property, we can move quickly to close a sale because we accept homes in any condition. We also work locally in the Long Island, New York area – and have for years. Our knowledge of the local regions and neighborhoods means we can often see value in a property that others might not if they only assess the home itself.
If you’re considering selling to a flipper, take the time to choose someone who understands the community and has a history of working in it. If you’re considering becoming a flipper, this tip can also serve you when looking for the right property.
3. Establishing A Plan (And Budget)
A successful flipper (professional or otherwise) must outline a repair budget. If you’re new to the industry, understand that most distressed properties will come with their fair share of surprises. In a recent home, we found unexpected structural damage, which means extra safety measures (and, of course, additional costs). The other most common surprises include unwelcome guests (of the four-legged variety), damage in areas like the foundation or electrical systems, and various leaks, pests, and mold. Permits and violations can also appear when flipping a home, adding unexpected time and delays to address necessary inspections, alterations to building plans, and more.
One of the best ways to expand on a professional team like Stress Free Homebuyer is to take the time to build a network of additional professionals who can support unique challenges or additional work necessary to keep your project on track—regardless of what you find when you open those walls!
Before and After Case Study
Single Family Home – Lake Grove, NY
This Lake Grove home is a single-family, one-story that was outdated and had been empty for some time, leading to extreme disrepair. The owners wanted to exit the property quickly, and were able to do so in less than two weeks.
Project Focus
We completed a full remodel of this home, including a kitchen, bath, bedrooms, basement, and exterior renovations. This included tearing the home down to studs before rebuilding the interior, completing new exterior finishes, and installing a new HVAC system.
As a result of our real estate flipping, an outdated property became a refreshed modern home with beautiful new features, clean interior and exterior, and improved equipment, appliances, and layout to support a new family.
Expert Tips
If you’re searching for a home flipper to buy your distressed property (or interested in learning more), here are our top three tips to get you started:
Tip 1 – Always work with someone experienced – you want to know that if you sign a contract to sell your home, they can deliver (not back out because they’re looking for the “right” property to flip).
Tip 2 – Search for someone local who stays current on trends and knows the community well. This can help you get top dollar if your distressed property is in or near a more desirable neighborhood (something a local would know). If you’re getting started in flipping – don’t skip this critical step. Taking the time to know all the ways to assess value can help you find more opportunities!
Tip 3 – Choose someone that is established with a professional network. Their access to resources can benefit you if you need introductions to trusted partners – from attorneys to movers. If you’re getting started in flipping, invest in networking and creating a wider pool of partners can support your growth needs and be helpful for your sellers.
Want to learn more on selling to an as-is home buyer (aka house flipper)? Click here for our step-by-step guide.
Frequently Asked Questions
Interested in learning more about the best way to flip houses? Check out our frequently asked questions or reach out to the Stress Free Homebuyer team today!
- What’s the best way to flip houses?
If you’re new to flipping homes, the best place to start is by working with someone experienced. As a buyer, building a network of professionals can help you overcome the surprises of distressed properties. And if you’re a seller, you’ll have a better, faster experience when you work with someone who has experience working in your local area.
- How do I find homes to flip?
There are many ways to find homes to flip, from reaching out and marketing in your local area to working with a real estate flipping company or broker. Choosing the right property to buy is essential, especially if you’re just getting started, so take your time and understand the true value, requirements, and needs of any distressed property before you buy.
