How to Flip Houses in Florida: A Lender's Guide

28 May 2023 · SFR Capital

Why Flip Homes?

A low overhead opportunity to grow independent wealth and financial freedom with the following benefits:

• Earn additional income while initially maintaining monthly paycheck from your employment
• Develop your personal skills and experience
• Develop your professional real estate skills and experience
• Develop your expert team to identify, finance, purchase, rehab and sell home flips
• Develop a much better life for you, your family and your community as you successfully develop your home flipping business.

Home Flipping Steps

• Find a Great Location
  One of the best tips for flipping house is the importance of finding a great location. It may be easy to find a fixer-upper with great potential in a worsening neighborhood. Avoid these locations. Factors like crime or a depressed economy with decreasing jobs are out of your control as a real estate investor. Avoid these locations.
  You must do the research to find areas with rising real estate prices and employment growth. You’ll also want to research safety and schools so you’re sure families and couples will desire your property location.
• Structurally Sound
  Make sure the structure of the home is sound – roof, walls, foundation. Have the home inspected by a professional home inspector during your purchase and sale agreement inspection period. Make sure the home’s electrical, plumbing and HVAC systems are in good working condition. If you are just getting started in the business, keep it simple. Renovate kitchens, bathrooms, some flooring, paint and landscaping in order to make a quick profitable sale. You’ll want to avoid homes that need completely new plumbing or wiring. Mold and roof replacement are also expensive problems you’ll want to avoid when you first start out.
• Put Property under Purchase and Sale Agreement
  Negotiate a Purchase Contract with the property Seller that has an inspection period of sufficient time to physically inspect the property, make a good estimate of the costs to rehab and secure a commitment from a private lender for a loan with terms that fit your business plan and financial structure.
• Reach Out to a Private Lender
  Private lenders usually require low down-payments. Private lenders also more interested in the total value of property and your cash investment in the project than they are in you as a borrower. If you need cash for your project fast with increased buying power and profit potential, reach out to a reputable local private lender like SFR Capital.
• Don’t Overlook Curb Appeal
  Many home flippers are focused on the changes they’re making to improve the inside of their project. However, an unattractive view from the street can really limit potential buyers from purchasing your property. Make sure to regularly mow the grass and trim the hedges on your property. Other landscaping touches, such as colorful flower beds and attractive walkways will motivate buyers.
• Don’t Over-Improve
  You’ll need to know your neighborhood, as well as the prices comparable properties are selling for near your property location. It can be tempting to invest in details and extra accessories to really make your house pop. But you’ll want to honestly think about whether buyers in the area will be willing to pay more for those kinds of improvements.
• Avoid Properties with Poor Design and Cosmetics
  You’ll want to choose a house with a good basic layout and structure before you invest. Think about factors like room dimensions, high ceilings, big windows and kitchen islands. If, however, you’ve got some poor cosmetic choices in a great neighborhood, you may be looking at a gem. Strange paint colors, old carpets, and grungy sinks and toilets can all easily get replaced and refinished.
• Use an Experienced, Highly Rated Real Estate Agent
  A good real estate agent will have the know-how required to point out the best selling points of your flipped home, as well as negotiate a good deal. A good real estate agent as part of your team will help you find opportunities, make important suggestions on property improvements, introduce you to other professionals that can contribute to your home flipping business, know what buyers are looking for and get your residential property flip sold.

Summary

House flipping can be an incredibly rewarding experience and life changing business. Before you embark on your exciting profit-building adventure, educate yourself and build a network of experienced successful residential home flip professionals. When you need a hard loan private lender as a part of your fix and flip team, please give SFR Capital an opportunity show you why many fix and flippers use SFR again and again as their trusted source for residential fix and flip funding.

Talk to SFR Capital about your next Florida investment property →

SFR Capital LLC (SFR) is a private lender, license exempt under Fla. Stat. § 494.00115. SFR only makes business purpose mortgage loans on non-owner occupied Florida investment property. Nothing here is an offer or commitment to lend. All loans are subject to SFR approval of the sponsor, property collateral, title and documentation.