Real estate flipping is an old craft. Its origins can be traced to the 1980s, and since then the industry has expanded exponentially. The Motley Fool reports that in the second quarter of 2024, about 79,000 single-family homes and condos were flipped, accounting for 7.5% of all home sales in that period.
If you're interested in real estate flipping, you've made a smart decision, and there couldn't be a better place to do so than in DeLand, Florida. Getting your feet off the ground and finding success, though, isn't a walk on the beach. At least not without having the know-how.
This brief article is your go-to guide for being a successful flipper. Read on!
Understand the DeLand Real Estate Market
Your understanding of the real estate market will often determine your performance as a flipper. Flipping is all about finding absolute steals and selling them for top dollar. To find such deals, you must know your way around the market.
Study DeLand's market and understand the conditions in various neighborhoods. Off the top of your head, you should be able to tell which neighborhoods give you the best chance of making a profitable deal.
It's also important to develop close networks with other industry professionals in DeLand. For faster execution of purchases, you need to have a real estate attorney and realtor on speed dial. These professionals will take care of all the legal paperwork, leaving you with the job of identifying properties with great flip potential and negotiating with sellers.
Line Your Financial Ducks in a Row
Speed is the name of the game in the flipping industry. You're not the only player in DeLand. Once a hot property enters the market, it'll be snapped up quickly. You need to have the ability to close quick purchases, which calls for ready access to capital.
This isn't the type of business where you can rely on banks and other lenders for financing. By the time a bank completes its approval process in 30 days, the property will be long gone.
The ideal situation is for you to have adequate capital at hand. Before starting up as a real estate flipper, raise enough funds. If you have to rely on third parties, your best bet would be hard money lenders. Although their rates are higher than banks, they have faster loan approvals.
Flip When the Time Is Right
You want to make the most money off a flipped property. Buying a house and renovating it will increase its value, but that's not the only determinant of your asking price. Savvy flippers wait until market conditions are in their favor to flip a property.
Ideally, you want to sell in a seller's market. This is when the demand for property is higher than the supply.
Real Estate Flipping Done Right!
Real estate flipping is a tried and tested way to make money as a property investor. However, it needs the right expertise, connections, and approach. With these tips, you're now ready to launch on solid footing.
What's more, at PMI Central Florida, we can help you find the best deals. We offer comprehensive and flexible real estate brokerage and consulting services, helping DeLand investors who are looking to buy or sell do so with ease.
Call us for expert real estate advice.
