Top 6 Insights to Take Your Fix-and-Flip Business to the Next Level

 

 

The house-flipping industry is constantly making gains. But not all projects are successful, and although there are great profits to be made, renovation projects can go bad quickly.

Here are some insights that can help make a Fix-and-flip business a success.

Do the Proper Homework

Before investing in a fix-and-flip home, it's important to look at the area, how much it will cost to fix and how much profit can be made by selling it in the current market. Find the perfect project by looking at houses that need fixing in good neighborhoods. They're likely to sell faster.

Good neighbors make a nice neighborhood. Inspect the entire location and check for crime rates, good school systems, and other amenities. Houses that have such benefits and are in good locations tend to sell faster. A good profit can be made as well.

Make a Detailed Plan

Make a detailed plan with a clear scope of how much work and how long the fixer-upper will take. Work with knowledgeable contractors in case of no prior experience, so materials don't end up costing more than they are worth.

The scope should be detailed enough to have each price per line item on it. If there's no exact price, take at least three bids so a reasonable price can be decided. Not making a detailed plan is a common mistake among investors.

Avoid Large Constructions

In many areas, it's not worthwhile to undergo large construction projects such as making new garages and other similar additions to the renovation property. This will take more time and money to complete. It can also slow down the other renovations, and the permit process can be tedious.

When the expense of large constructions is added with the time lost in completing them, it's not profitable. Unless the contractor can manage large constructions timely at a significantly lower cost, it's not advantageous.

Conduct a Financial Analysis

A complete financial analysis of the property will ensure the success of the fixer-upper. Every aspect of large investments should always be analyzed. A comprehensive analysis is the way to go to earn great profits.

Find a Good Contractor

A good contractor can make or break the fix-and-flip project. Finding one that's easy to speak to helps the investor avoid problems that stem from miscommunication. There are always problems that may arise when fixing a house; how the contractors react to these hiccups can either make the project profitable or bring it to a screeching halt.

Pick the Right Hard Money Lender

Other than the contractor, it's crucial to find the right hard money lender. They'll lead your fix-and-flip business to success. Choose a dependable company that can act as a guide for making the best decisions and finishing the project quickly.

Learn More About Making Your Fix-and-Flip Business a Success

Insula Capital Group is a private lender and real estate investment company that offers quick private financing for real estate investment and fix-and-flip house loans. They also offer new construction project loans. Contact them today or visit their website for more financing options.