4 Helpful Steps to Follow to Ensure that your Flip won’t Flop
HGTV makes it seem like flipping a house only takes a week. In reality, it takes much more effort, time, and planning to execute a successful flip. But, if you are a novice investor how do you know the average time it really takes to rehab a home and how do you break down your timeline? ZINC, of course, has you covered! Market conditions, interest rates, carrying costs, and property taxes all start to add up and start compounding. So, it is very important that you create a detailed exit strategy. Todd Pigott, ZINC owner, and industry expert says “the average flip should take anywhere from 3-4 months”. But, it is vital that investors take the right steps throughout their flip to ensure an efficient and quick flip
Step 1: Acquiring the right property- The type of home an investor purchases is the biggest determining factor of your exit strategy. ZINC recommends that borrowers look for an investment property that is cosmetic in nature and will not require a major rehab. Another important consideration is location. Is the home in a desirable location that will draw buyers in? Taking the time to look at all the elements of a property will make you more successful when it comes time to flip.
Step 2: Budget- Remember you are flipping this home to end up selling it. Focusing on cosmetic flips will help you budget for a home that will sell for the same price as other homes in the neighborhood. Pay attention to comps! Having the most expensive house in the area may seem great in terms of profit, but you will have a hard time selling it if it is not in a comparable price range. What absolutely needs to be changed and what can wait?
Step 3: Funding your Flip- Lenders can greatly affect the timeline of your flip. When choosing a lender, be sure that they control their own funds, have knowledge of the local market, and are very responsive. ZINC encourages all investors to do their research before committing to a lending partner. Make sure to ask questions to ensure that your loan will be funded in a timely manner and that you will be working with a lending partner who actually cares about your success as a borrower.
Step 4: The Flip- The fun part! Find a reliable crew to flip your property quickly and efficiently. Picking a cosmetic flip will help shave time off of this step. Try to find a crew//contractor that does not have a multitude of other projects going on during the time of your flip, as this will greatly affect your exit strategy. Don’t forget those final touches that make sellers feel more at home: landscaping, staging, professional photos, etc.
ZINC may not be able to help you flip a home as fast as you see on TV, but we can set you up for success. We are always here to help! Our short-term fix and flip loans are perfect for a 3-4 month exit strategy. We lend up to 90% of the purchase price and 100% of the rehab, we even lend regardless of experience! Click here to Apply Now.