Flipping homes in Nanaimo can be very profitable if you know how to do it right. Here are a few tips on how to find the right homes to flip.
First, establish a good working relationship with a lender , property inspector, handyman and a real estate agent. Having a trusted realtor when it comes time to sell your 'flip' is critical, because realtors have access to the multiple listing service which means thousands of real estate professionals and their clients will be exposed to your house when it comes time to sell.
Next, choose a geographic area to prospect in. Home flipping professionals call this a 'farm area'. If you live in a dense, urban setting your farm area may only be a few blocks. If you live in the suburbs, you may need to choose several adjacent neighborhoods to prospect in. You will want to get to know your farm area inside and out. When you first begin your home flipping career you will spend more time driving around and learning about your farm area than you will doing deals.
After you've selected your farm area and know it like you know the back of your hand, you'll want to start looking for 'for sale' and 'for rent' signs and for open houses. This is the step where you educate yourself on what the actual asking and selling prices are for the homes in your farm area. Keep a chart of every home that you look at, including the asking and selling prices, the square footage, the number of bedrooms and bathrooms, and how long it takes each home to sell. With this information you will know what the 'fair market value' is for the homes in your farm.
Now comes the fun part. Keep a constant look out for vacant homes and homes that look like distress sales. If a house for sale has an unkept yard, shows obvious signs of wear and tear, or has been on the market for a lot longer than the other comparable homes you've been looking at, this could be the deal that you've been looking for.
The secret to making money from flipping homes is to buy low and sell high, yet it is always surprising how many budding real estate investors and home flippers do not do the leg work it takes to understand their farm area and to spot a deal when they see one. Once you find a home that you think you can flip, be sure to factor in any needed repairs or renovations, closing costs, and when it comes time to flip, the expected time on market and closing costs.
You can make money flipping homes in Nanaimo when you learn to do it the right way!