When you think of investing in real estate, you may automatically picture people flipping houses on HGTV or buying run-down homes in rundown neighborhoods and fixing them up to sell at a higher price. But if that sounds like you, there’s one important thing to keep in mind: You can lose money on this kind of investment, so it’s important to be aware of the best ways to find the best fix and flip property in Upstate NY or Hudson Valley area before jumping into it. Luckily, these tips from a professional house flipper and licensed real estate broker can help ensure that your effort ends up being worthwhile – without costing you your shirt!
Finding The Best Fix and Flip Property in Upstate NY or Hudson Valley – with Dino Alexander, CEO & Principal Broker at ALLUVION INC. – Photography by Duncan Avenue Studios
1) Get Your Finances Ready
When deciding whether to buy real estate for sale by owner, or through a licensed broker, it’s best to have your finances ready. If you are looking at flipping property in order to make a profit, then you should be able to cover all of your expenses. It is important that you take some time to figure out how much money you will need during each stage of buying real estate for sale by the owner or by a broker. With clear financial expectations, you will be better prepared throughout each step of buying a real estate property to flip. I always recommend getting advice from a licensed mortgage broker – even if they can’t finance a fixer-upper (which is not usually the case), they will point you in the right direction.
2) Figure Out What You Want
Determine what you want out of your fix-and-flip by determining how much money you’re willing to invest in its purchase, how much time you want to put into it after its purchase, and how quickly you need to sell it. A fix-and-flip that requires a large investment but will keep you occupied for months after purchase might not be a good fit if you have other things on your plate. Determine where you want to work on your flip; proximity to amenities can affect property value more than many people realize. Additionally, quick access to a home improvement store might save you tons of money as well, because fix-and-flip projects are famous for their unpredictable last-minute runs to Home Depot. Don’t forget: A good real estate broker is invaluable when searching for properties in New York’s Hudson Valley and Catskills! When working with an experienced team of real estate professionals like Alluvion Real Estate, one of the top Hudson Valley real estate teams, you can feel confident knowing that all necessary research has been done to ensure no detail is overlooked before placing an offer.
3) Look for Specialty Properties
If you’re going to invest your time, money, and energy into a fix-and-flip project, look for properties that will give you a return on investment. One of these projects might be finding a vacant lot in an up-and-coming neighborhood—then buying an available lot nearby (or starting construction on one) to build an alluvion. You could also buy a run-down home in desperate need of repair; there are many different reasons why someone would sell such property at bargain-basement prices. Finally, try looking for homes with excellent potential in desirable neighborhoods that are still well below market value. Whether it’s Newburgh, NY, or Beacon, right across the river, the ALLUVION Real Estate Team is here to help!
4) Set Clear Goals
Before you get started looking for a fixer-upper property, set clear goals on what your ideal project would be. You want to define both your needs (so you’re not compromising) and wants (to make sure it fits within your budget). For example, if you’re on a tight deadline, prioritize finding something that’s already been gutted so you can move forward quickly. If you have experience renovating but are new to flipping, think about where it makes sense to hire help: Contractors may be willing to work with someone who’s new at flipping—and might cut deals since they know they can outsource difficult tasks.
5) Don’t Do All The Work Yourself
When it comes to finding great fix-and-flip deals, you need to enlist your team. You have a lot of responsibilities as a business owner; do yourself a favor and find real estate agents who will perform research for you. The Alluvion Real Estate Team is your go-to team of Realtors in the Hudson Valley for several reasons, including their passion for real estate and because they’re experts in finding properties so you can fix them up and sell them quickly for top dollar. If you want to know how to find a great cash deal for property flipping, then give us a call at (45)518-2750!
Bonus Tips from Dino: 3 Biggest Mistakes First Time Flippers Make
- Not researching market value – remember that buying low is only half of what makes an investment worth it. Selling high is just as important as well!
- Not interviewing contractors/appraisers – if something goes wrong with your flip project, don’t be stuck not knowing who was behind faulty workmanship or shoddy construction. Talk to a professional before you hire them so you know whether they’ll actually do good work for you.
- Don’t make your timeframe too short – short-time frame projects are more likely to have problems; aim for 6 months minimum unless there’s a really good reason why it should be faster (and stay away from one month flips at all costs!). You want enough time to plan everything carefully and get everything done right without being rushed!