The current housing market presents a number of ideal opportunities for house flippers. Whether you’re an experienced rehabber or completely new to the game, the current market offers great chances for you to make excellent ROI with house flipping. Conditions are currently perfectly aligned for house flippers: the federal mortgage rate is at an all-time low; there is a current lack of homes available on the market, increasing demand for available houses; prices are still low but beginning to resurge; and buyer confidence is improving across the nation. All of these factors create a situation in which there are lower risks and increased opportunities for investors in general.
However, there are a number of things that you’ll need to consider before jumping in head first. House flipping is an excellent way to invest, but it’s not something you can do half-heartedly. Consider these three factors before deciding whether or not house flipping is the right path for you.
1. How much time do you have? House flipping takes a commitment of both money and time. You’ll need to do a great deal of research in order to find ideal investment opportunities and make sure that you have all of the information that you need before making a purchase. You’ll have to investigate private money loans, the best neighborhoods for investing in, and the specific factors that will go into yielding a profit at your investment property. If this is something you want to do as a hobby, make sure that you have a team that you trust and/or the hours necessary to make wise investment decisions.
2. How much money do you have saved? In general, a private money lender will not offer you a loan unless you also have money in the game. Are you able to invest in a property using your own capital without seriously threatening your financial future? While house flipping can be an extremely lucrative investment opportunity, it is not without its risks, and those risks are higher for first-time investors who don’t have a strong lay of the land. If you do have the capital necessary to invest in house flipping, you can help minimize your risks by partnering with a lender like ZINC Financial who will provide you with insight and guidance throughout your house flipping journey.
3. Will you be able to act quickly? There is an element of guts to being a house flipper, but more than intuition and luck, the best house flippers are the ones who are the most prepared. In order to succeed as a house flipper you’ll need to do a great deal of research into the housing market, estimated renovation costs, and the anticipated final value of your investment property. Having all this information at your disposal will help you move fast when a new property goes on the market, and having a strong lender at your back will give you the buying power necessary to secure a loan and make the purchase before anyone else.
To learn more about the nuances of house flipping, contact an advisor at ZINC Financial today. Their experienced team can help ensure that you have all of the information and know-how that you will need to succeed as a house flipper.