Here’s Why Location Matters When Flipping Houses
When flipping houses, there’s one thing that matters most: Location, location, location. You’ve heard it a million times already but that’s only because it’s the most important factor in valuing real estate. When it comes to buying a property to flip, nothing is more important than the location. This means that everything from the school district to the amount of sidewalks should be taken into consideration.
It is important to research public transportation, walking distance to stores, and the proximity to airports. This information varies in importance depending on what kind of people are interested in the neighborhood. If the neighborhood is made up mostly of families, the school district is important. There are certain demographics that may not own a car so that’s when public transportation becomes important. There are other demographics who own multiple cars, in which case a driveway and garage is a priority. Knowing your demographic will help you understand what needs to be done to the home before you commit to the project.
Due diligence is the most important aspect of any investment but it is especially important when it comes to investing in real estate. Make sure that you do research by going to Redfin.com or other real estate websites that will show you comps in the area. Comps are other similar properties in the area that have been sold recently or are currently on the market. If you’re thinking about buying a property in a neighborhood where there are a good amount of homes that are on the market, it may not be a good place to buy. If other homes in the area aren’t selling quickly, then don’t expect yours to.
If you’re not willing to put in the effort, you may as well stop now. Flipping Houses isn’t an easy way to make money overnight. In order to make money (and you can make lots of money) you need to put in the effort. Do your research and learn everything you need to know about the property and the neighborhood. There is risk involved with any investment but your research and due diligence will help minimize risk.
When it comes to house flipping financing, hard money loans are a great tool. The hard money loan definition is a short-term loan for individuals purchasing residential or commercial real estate. Hard money loans give flippers cash for home purchases and property development with about a year to repay.
Traditional lenders may have strict regulations for potential borrowers but hard money lenders work with the borrower to find a loan that works for them. Communication, integrity, and timeliness are important when it comes to finding a lender. Finding an alternative lender to handle these investments doesn’t have to be difficult. Find out more about HML Investments here.