Are you thinking about getting involved in fix and flips? Before you apply for a loan and jump into your first flip, ZINC has some advice for you. We sat down with ZINC Financial Inc. owner and industry expert, Todd Pigott, to get some advice for first-time flippers. Todd himself has fixed and flipped over $100 million in real estate throughout his career, so he knows this industry like the back of his hand. After so much experience, he has 3 helpful Fix and Flip Tips for Beginners:
- Work for someone else first– Working for someone else for a year or two will teach you the ins and outs of real estate. Keep in mind, doing a fix and flip is a lot of money, so, if you don’t know anything about the industry there is room for BIG mistakes, which could mean a BIG loss for you.
- Keep it Simple– Your first Fix and Flip should not be complex, it should be below the median cost of housing in the market you are planning to invest in. A first-time investor should invest in a property with a simple rehab because mistakes are far too costly when it comes to flipping. Todd says, “70% of rehabbers do not return after their 3rd flip.” This is due to the fact that they took on too much, too soon, without having experience in the industry. Therefore, a simple investment property will give you some experience and will mitigate some major issues you would face doing a major flip.
- Find a Private Lender that has their OWN Capital– Working with a private lender, like ZINC, that has control over their own funds is a HUGE benefit to you as a borrower. Todd explains that when lenders do not fund their own loans and broker them out to third parties, there is room for errors. For example, if a borrower were to work with a lender that does not directly control their funds, they could end up waiting on a third party to fund their deal, putting the entire transaction in jeopardy. Here at ZINC, we control our funds and make all of our own decisions, which means borrowers do not have to wait for anyone else. We fund their loan quickly and efficiently which is a major stress relief to all borrowers.
ZINC Financial Inc. is here to help you! Whether you have questions about getting involved in fixing and flipping or you just want to receive more information about or loan programs, we have you covered! We lend regardless of experience and pay up to 90% of the purchase price and 100% of the rehab. Reach out to us today or Apply Now! If you are a seasoned investor that wants to know if your investment is worth it click here!