Finding Amazing Deals as a House Flipper

Flipping houses is a competitive business. That’s not going to change. As the market changes from year to year, the number of people doing house flipping deals and the number of houses available to flip can fluctuate substantially, but regardless of the state of the housing market, flipping houses is always competitive.

So if you’re just starting out as a house flipper and are hoping to find your first great property, you’re going to need to do your research, make connections, and probably spend some money. Here are five house flipping tips for finding amazing deals as a house flipper:

1. Expand your search radius.

If you were hoping to flip houses in your local neighborhood, you may need to adjust your thinking. While you might just happen to live in a hotbed of house flipping activity, chances are there are better opportunities outside of your immediate area. Figure out how far you’re reasonably willing to travel or where you could potentially put together flipping crews that you trust to oversee the work for you, and start doing your research. You may find that the best opportunities aren’t where you thought they’d be.

2. Start building your network.

A huge part of this business is referrals. They aren’t essential. You don’t absolutely need anyone else to be a successful flipper, but a solid network definitely helps. Attend local events for developers, realtors, and other property investors. Join real estate investment groups. Look into attending conferences or seminars about house flipping. By making friends with other house flippers, you’ll gain access to a web of helpful information – not just about hot properties, but also about the business in general.

3. Find a realtor you trust.

If you aren’t a realtor yourself, it makes good sense to work with a realtor with a lot of experience around house flipping. The right realtor can answer your questions, provide you with leads, and help you avoid the many potential pitfalls of flipping a house for the first time.

4. Talk to wholesalers.

Wholesalers are essentially middlemen who make a living finding ideal rehab properties, buying them, and immediately reselling them to house flippers for a fee. Wholesalers tend to be very well connected, so even if you don’t buy from a wholesaler, they’re good people to know. You’ll forfeit a bit of your future profits if you buy from a wholesaler, so it isn’t ideal, but it can be a much simpler process than finding the right property and securing it on your own.

5. Find a private money lender you trust.

If you’re planning to fund your flip with a fix and flip loan, you may want to make your first set of calls to a list of private money lenders. Reputable lenders can turn into long term partners and help you better leverage your existing capital so that you have cash on hand for renovations without putting your own house at risk. Good private money lenders can also preapprove loans so that you have some leverage when you find the right property and can act quickly, saving you time and money.