How to Find Fix and Flip Deals for Investors and Wholesalers.
Not all investors (new or seasoned) know how to find fix and flip deals, but expert fix-and-flip investors and wholesalers understand the costs involved to find a new investment property. It sounds simple, but as U.S. News & World Report also explains, it can be quite complex. Knowing and managing your costs will help you to find fix and flip deals, as well as the investment process itself, from the upfront purchase price of a property, to the renovation and closing costs. Knowing how to estimate and account for these costs correctly is one of the first steps to helping you identify fix and flip deals and which ones are profitable for you or your investor. Whether you are a Wholesaler, or Investor, or both, you need to educate yourself on this!
Your Network Is your Net Worth, as they say…
By building networks of relationships, you will have people who bring properties TO YOU… You probably never hear a seasoned high level investor say “I can’t find any fix and flip deals” because they can, and they do! They likely have their business setup up in a way that they have fix and flip deals consistently flowing to them!
This means that expert investors (and smart novice investors or wholesalers) will have an intimate connection with their target real estate market, and others who are as well. They will have networked with real estate professionals such as agents, or contractors, and other people who know when properties that meet their criteria for fix and flip deals become available. These investors know how lead generation works and have systems that allow for consistent deal flow.
How newbies can find fix and flip deals
If you are just starting out as a fix and flip investor, or wholesaler, you likely do not have an established network yet that can help you identify deals, but building that network is an integral step towards developing a long term and repeatable process for success
You should start by establishing connections with real estate agents in your target market. A good agent (particularly one who is an investor or works with investors) should know when new properties come available that would make for a a good fix and flip deal.
Other wholesalers can also be a great resource when trying to source fix and flip deals. Whether you are a wholesaler yourself, and/or an investor looking for deals, you should always network and keep in touch with your local wholesalers because they likely have sources of new fix and flip deals for you to buy, or co-wholesale with.
Another source to consider is foreclosure properties that have been on the market for a long time. Sometimes a bank will be willing to take a significant amount less than
the property is listed, if it is has been sitting for a long time. Have your realtor setup MLS searches that track DOM (days on market) and notify you when properties have been on the market over 60, 90, 180, 360+ days! Then, have them make an offer for you!
Another great way to find fix and flip deals is to simple speak with owners directly. Are there any obvious distressed properties in your area? Go knock on their door. If they don’t live there, SKIP TRACE the owner and call them. Let them know you are interested in buying their property and make them an offer. People often overlook the power of a simple conversation, that may end up leading to a good fix and flip deal.
Where (and when) to look for Fix and Flip Deals
After you have build your strategy to identify fix and flip deals , you will need to determine when and where to invest. This is key for wholesalers and fix and flip investors alike, because as a wholesaler you need to know your end buyer’s criteria and understand what they are looking for and in what markets. Not all markets are the same, and some markets are better for fix and flip investments than others. But, just because a market does not appear to be the great, doesn’t necessarily mean there isn’t money to be made.
There are many key market indicators that will help you to determine a good market to find fix and flip deals within, such as its’ overall economy, movement of population (are people moving TO the area or AWAY from it), new construction, private loans being recorded, amount of cash transactions, etc. Also keep an eye on foreclosure rates, amount of new inventory on the market, as well as crime rates and to help you have an overall picture of a particular market.
REI Machines can help you find your next Fix and Flip Deal
We work with both experienced fix and flip investors, wholesalers, and agents, as well as those who are new and want to get ahead of the learning curve and start generating more seller leads for their own fix and flip deals or for wholesaling. Check out our list of services and see what would the best fit for you would be:
- Done-For-You Lead Generation
- Data and Marketing Packages
- Marketing Software
- Lead Lists
- Skip Tracing
- Business Consulting
All you have to do is schedule a FREE CONSULTATION to see if we’re a good fit for you!