Buying an Investment PropertyBeing successful at buying investment property takes time and knowledge.

The problem is some experienced flippers keep their secrets to themselves.

Or maybe they don’t and write a book about it like “House Flipping for Dummies” or some other title.

Most have a particular market niche they like to exploit. Some invest in duplex housing. Still others have a penchant for college towns and the constant stream of rental income students bring.

But one thing they all have in common is the ability to act quickly when the perfect flip pops up on the radar. What does it take to buy an investment property quickly?

Do Your Homework

Successful house flippers who buy numerous investment properties don’t act on whims. They know the average home prices per square foot in the community, and they know when a potential flip resides.

A successful flipper knows Days on Market data intimately and how long it will take to sell a property for a projected profit. And what renovations might be needed?

Some properties require nothing more than a fresh coat of paint or new carpet.

Other projects might require a new kitchen or bath remodel and still other properties will require extensive repairs to foundations or roofs.

Which repairs will bring the most bang for their buck? Not knowing ahead of time can cause a profitable flip to founder.

Financing

When buying an investment property you may want to pay cash for. That is if you have enough in your sofa cushions or coin jar.

Most though will need some form of financing for either the acquisition, renovation or both.

Successful flippers have at their disposal private investors who can provide quick cash as well as a standing loan application at their local bank.

Your Team

Perhaps the most successful of the three is your team. Your team helps you fill in the knowledge blanks that you don’t have.

If you don’t have access to days on market information or the Multiple Listing Service you need to work with a real estate agent who does.

A good agent will constantly be on the lookout for possible acquisitions and help you find solid deals that can provide you with solid returns.

Finding a reputable contractor can help you determine what repairs are needed, how much they’ll cost, and whether or not they’re truly needed.

Some flippers are experienced contractors. But you don’t have to be; you just need to know one.

Or two.

When buying an investment property you’re intending to flip you don’t need to know everything.

Instead, you need to build a team that provides the answers when you need them.

To be successful, do your homework, have your finances in order and keep in close consult with those committed to your success; your team.

Talk soon,
David Slabon