Everything You Need to Know About Flipping Houses in Fort Lauderdale
Real estate has been gaining a lot of attention over the past decade. That’s because the world is heading toward a critical economic recession. Understanding the situation, many of the concerned people are investing in real estate to secure their financial freedom in the long run.
Flipping houses is an incredible real estate investment strategy offering quick and solid returns. This article will cover every minor detail related to flipping houses in Fort Lauderdale. Before diving deep into the details, let’s take a quick look at what flipping houses means.
What Do You Mean by Flipping Houses?
House flipping is a well-known real estate investment strategy which means buying distressed property and selling it for profits after reinstating it. Serial real estate investors are always on the lookout for damaged property. And marked by the robust nature of the real estate market, houses sell daily. That’s why flipping houses is an extremely profitable niche if you have the right land and market knowledge at hand.
Usually, the flipping house strategy works by purchasing a distressed property for a relatively lower price than the market. After buying the house, the investor will renovate it covering the cost of electricians, plumbers, contractors, taxes, utilities, etc. Once the house is fully restored, it is listed by analyzing the market and sold for 2X to 3X profits.
Every penny difference between the price of the house after renovation and the final selling price of the house is counted as profit. Usually, the property is reinstated for approximately 10% of its purchasing price. House flipper will also cover the reselling and closing costs for the house.
Flipping Houses in Fort Lauderdale
Fort Lauderdale has one of the hottest real estate markets in Florida. With meager tax rates and multiple listing options, flipping houses in FL is the best real estate investment strategy for all investors. Moreover, Fort Lauderdale investors can skip paying the listing commission via “Flat Fee Multiple Listing Services“.
Flat Fee MLS means you will be paying an agreed price for your house listing instead of a commission depending upon the selling price. It further adds to the profitability of flipping houses in Fort Lauderdale.
Flip Houses with No Money
One of the most popular questions is, “Can you flip houses with no money in Fort Lauderdale?”. The straight answer is, “Yes, you can undoubtedly start flipping houses for profits even if you have no money”. Many serial real estate investors started their journey with zero investments, so flipping houses with no money is an option.
If you wish to flip houses with no money, many other variables come into play. Usually, you’ll be sourcing money from a lender for a pre-decided interest. Most lenders also see flipping properties as an investment opportunity, so getting a loan is easier than expected. Here is a list of sources from where you can get loans to flip houses with no money.
- Private money lenders
- Wholesaling
- Crowdfunding
- Hard Money Loans
How to Flip Houses in Fort Lauderdale?
Flipping houses in Fort Lauderdale is perfect for beginner and veteran investors because there are minimum chances of big losses. If you have the right mindset and market knowledge, house flipping is the best way to generate quick cash. Here is a step-by-step guide for people wondering, “How to start flipping houses in Florida?“.
1. Research
If you’re planning to flip a house with either your money or loans, thorough research of lands and property rate is compulsory. Good analytical research guarantees a smooth and profitable house flip. Property rates vary from region to region. So, always be on the lookout for a high-rated property on sale for a lower rate and needing little renovation and repairs.
2. Finance Estimation
Once you have locked your eyes on a potentially profitable property, it’s time to calculate the profits. You should get an estimate of the cost of repairing, listing, reselling costs, etc., to calculate the approximate profits you’ll be getting after a successful house flip. A golden tip is to keep your investment margin spare for unexpected expenses like hidden property damages, holding costs, etc.
3. Funding
The next step is to decide and finalize the funding source to ensure uninterrupted repair work. If you’re using your money, then there’s no issue. But, if you’re going down the loan lane, ensure and grab the loan before starting any repair work to avoid any problems. Also, planning and arranging funds beforehand will smoothen the process and eliminate delays.
4. Purchasing the Property
In this digital era, purchasing property is relatively easier than normal due to online listings and real estate marketplaces. After securing the funding, you should acquire the property ASAP. There’s a popular rule named “The 70% Rule” in house flippers in Fort Lauderdale.
The 70% rule suggests that for a successful house flip, you should only pay 70% of the “After Repair Value of the Home” after subtracting the rehab costs.
5. Refurbishing
Most rookie house flippers make the mistake of minimizing the repair cost for bigger profits. It may seem viable, but you’re devaluing your house in the long run because no one will pay good money for a torn-down home. So, you must get high-value repairs and furnishing that will upscale the property’s market value.
6. Marketing and Selling
Once the house is refurbished and restored to its full beauty, next comes the relatively difficult phase of house flipping, Marketing. The conventional method is to list your house in the real estate marketplaces and wait for the potential buyers to contact you. Or, you can contact a realtor by giving them a commission on the sale.
Both methods involve a lot of hassle of daily communication and check-balancing with the market. Therefore, a great way to market and sell your house is by contacting a real estate agency. Multiple agencies like 3 Step Home Buyer are available for residents of Fort Lauderdale that will help you sell your house with a profitable margin.
Why Choose a 3 Step Home Buyer?
3 Step Home Buyer is a premium real estate agency designed to help people deal with the hurdles of selling a property in Florida. We offer a 3-step solution to sell your investment property fast and with great profits.
3 Step Home Buyer is an excellent choice for house flippers because we provide fast and reliable house sales with meager complex legal and financial issues. Book an appointment with 3 Step Home Buyer and rest assured of a fair and honest sale of your investment property with excellent profitability margins.