I am looking for opinions whether it is a good time to enter the Houston market for flipping.
Which parts of Houston would you'll recommend.
Thanks for all your opinions.
It is a great time to flip - Houses sell quick - IF.... you are priced right, in the right location, and have done an appropriate renovation... So, I guess it depends on you and your business model - If you have been watching HGTV for several years and want to give flipping a try, I would say you are in an excellent position to lose your A$$. But, if you have a good grasp on the overall and specific local markets, have a source for discounted, distressed property, and have a good plan in place for the renovation and re-sale then you will see regular and repeatable success
@Sam G. Houston is always a good place to flip. Is it good time? It's 61 dollar question. Market over all is decent but as you might know real estate is local. You cannot expect to flip and sell quick like in West U compared to other places. It depends on multiple factors, budget, plan, margin etc., As @Jeff Wallace was saying you need to plan and act accordingly.
I been flipping and have multiple projects in play now.. It's hard to find flip deal to start with but if u do find it and numbers seems to make sense, make sure you do good job on rehab and take right decision and right choices to make it work.
Both of the above are active flippers. I met Jeff personally and I will vouch for him.
Anyhow. Houston is so big and very competitive. You gotta know your area and buy right. Nowadays it is hard, actually super to get decent deals from wholesalers. They leave little margins and inaccurate numbers in most cases. If you use HML then it is very hard to make money on them.
Thanks for the feedback. The wholesalers or dealers put out deals with bogus ARV and low rehab numbers. I rehabbed my house from the studs so I think I know what rehabbing is and how it needs to be done. But what I am not sure is which areas and price ranges to look in. There are some water damaged houses on the market too, whether it is worth looking at them?
I would add one thing - what's your competitive advantage that will allow you to turn non-deals into deals? If you're a contractor then you can save on contracting costs, realtor saves on realtor fees, etc.
Find your competitive advantage and use that to find awesome deals!
Best of luck!
@Sam G. i would 100% agree with @Cameron Tope says.... to win .. everyone must bring something to the table... you need to think about what is that you bring on the table to win ... Houston is a very sophisticated market with a lot of funds on the side line ready to be spent which gets activated within an hour.
Based on what i see/have seen/did/do ... If i am new player .. i would do the following:
1) Save up cash that i can spent within minutes
2) Become master analyzer of a given area so that I can analyze the deal within minutes and know the buy/sell characteristic of every single block on that neighborhood
3) Network heavily with wholesellers (only individuals... AVOID larger teams..i have nothing against them as they have great buyers on their list which will not benefit you) .. Wholesellers are still the best deal flowers in the market and someone always will send that THAT ONE you need. Faster you can pull the trigger .. more the chances to win cause everyone knows when its a good deal.
All of the above will increase the probability of success .. and it works :)
Guys thanks for the your feedback, Are there any good Real Estate networking events in the
Houston area which you'll recommend.
Helpful posts in this thread! From what I hear and read, the first rehab is the toughest. Lessons to learn, things to fix on flip #2, paying higher prices than a more experienced investor, etc...
OP, The biggest networking event I know of is down in Stafford down 59, 3rd Wednesday of each month. It's almost too large, but speaking to the vendors can be helpful. GL
Since I'm new I just go on https://www.eventbrite.com/d/tx--houston/free--business--networking/real-estate-networking/?page=1
And find anything that is interesting.
Some places will provide free dinner.
And in all of them you can connect with very successful investors that may benefit you in the future.