Looking back, 2016 has been a good year for house flippers. Less than a decade ago, due to subprime loans and a shortage of construction supplies, the flipping market took a downward spiral, but as 2016 draws to a close, the market seems to be looking up.
Following the 2016 presidential election, global confidence in United States real estate has risen, causing the prices of houses across the country to rise. Since the cost of real estate is going up, some people are looking away from building houses and buying new residences and instead are opting to put their money into house flipping projects which will allow them to buy damaged properties in great need of renovation, refurbish and update the properties, and then sell the final project for a profit. In the first nine months of 2016, the number of property investors who flipped a house was the highest it’s been since 2007 and in the third quarter alone, about a third of the deals were financed with debt, which hasn’t been seen since 2008. As we head into the new year, protect yourself and your investments by following these tips for house flipping in 2017.
Know your market.
- If you’re going to be investing your money in a house flip project, you need to familiar and comfortable with the market in which you’re investing. Before you purchase a property, take some time to get to know the prospective community and market; how often do properties get sold in this market? What’s the average time a property spends on the market? What kind of profit would you make on an investment in this area? By familiarizing yourself with the area, you can save yourself possible stress and financial setbacks by learning the ins and outs of your particular market.
Take to social media.
- Now more than ever, it’s easy to show off all the hard work you put into flipping your projects with side-by-side before and after shots that showcase just how drastically you’ve renovated these properties. There are countless social media profiles out there that each offers a unique perspective and platform for you to share your images, with some of the most optimal being the ever-popular Facebook, Twitter, and Instagram; Instagram is an especially handy tool as the entire purpose of the platform is to share photos.
This quick-profit strategy is great for anyone on paper, but in practice, it takes a certain kind of person to be able to see the full potential in even the worst properties, taking everything back to the studs and starting again new.
If you think house flipping might be for you, do your research, and follow me on Twitter for more information.