When people think of flipping houses, they usually think of the excitement of purchasing a rundown property, making great renovations, and remodeling the place to look like a million bucks. The hands-on work is what appeals to a lot of potential house flippers, so it can be a bit of a letdown when they realize how much math and research has to happen before all of that.
Finding the right property to flip takes careful consideration and calculation. No one can predict with 100% certainty what will happen in the housing market, but you can make your investment much safer by taking the time to calculate everything out.
Fortunately, this task is made easier with the ZINC Financial Deal Analyzer. This proprietary tool helps you calculate your expected returns on any given flip.
To use the tool, start by inputting the address of the property and the type of property that it is. Next, you’ll need to enter several different figures relating to the value of the property, your estimated taxes, and your estimated costs.
For example, the Deal Analyzer asks for the initial purchase price, the expected after repair value, the estimated hold time, and your anticipated interest rate on your fix and flip loans. You’ll also be asked to include origination points on your house flipping loans, any title and escrow fees, and other fees such as the real estate agent’s commission, if applicable.
With all this information in place, the Deal Analyzer will help you determine whether or not a house flipping project is worth your while. If the expected ROI is too low, you should keep looking for other properties to purchase. If the ROI is high, you’ll be able to quickly apply for a house flipping loan with ZINC Financial.
The tool is most effective when you can be accurate about the numbers that you’re inputting. Your best guesses are fine for an initial inquiry, but you’ll need to figure out your exact costs as best you can before you move forward. This is to help minimize the risk of your investment and ensure that you are being wise with your hard-earned money. Remember that fix and flip investing is a very competitive market. The people who are most successful are those who are most prepared.
You can give the Deal Analyzer a try for yourself by clicking here. You can also give our office a call to learn more about our loan programs or to ask questions about a house flipping project that you’re considering. We’re happy to help in any way we can.
