In the last few years, I’ve been recommending “flipping” –buying, fixing and quickly selling — versus “holding” foreclosure properties, for fast profits and to minimize market risks.
As many housing markets across the country are staging a recovery the potential to make $30,000+ profit in just one deal is very high. Especially since there is a deep inventory of short sale and bank-owned properties that investors can tap at below-market prices.
According to a recent report in USA Today, house flippers nationwide have grossed $29,342 on average for each property in the first half of this year. And their average time from start to finish has been only 106 days.
Nearly two-thirds of the homes that have been flipped homes are sold to first-time home buyers who seek a modest, starter home, as there is a shortage of “move in ready” inventory currently on the Multiple Listing Service (MLS).
When it comes to house flipping, of course, location matters greatly. Once predominantly practiced in West Coast metro areas — Las Vegas, Phoenix, Los Angeles, etc. — house-flipping is no longer restricted to just those areas.
According to USA Today, here are 10 best places to flip a house:
1. New York-Northern New Jersey-Long Island, N.Y., N.J., Pa.
- Avg. gross profit: $118,376
- Avg. days to flip: 118
2. Lake Havasu City-Kingman, Ariz.
- Avg. gross profit: $87,513
- Avg. days to flip: 99
3. Oxnard-Thousand Oaks-Ventura, Calif.
- Avg. gross profit: $78,106
- Avg. days to flip: 112
4. Washington-Arlington-Alexandria, D.C., Va., Md., W. Va.
- Avg. gross profit: $72,297
- Avg. days to flip: 110
5. Omaha-Council Bluffs, Neb.-Iowa
- Avg. gross profit: $71,384
- Avg. days to flip: 117
6. Raleigh, N.C.
- Avg. gross profit: $69,253
- Avg. days to flip: 114
7. Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.
- Avg. gross profit: $69,212
- Avg. days to flip: 110
8. Richmond, Va.
- Avg. gross profit: $65,092
- Avg. days to flip: 109
9. San Jose-Sunnyvale-Santa Clara, Calif.
- Avg. gross profit: $61,758
- Avg. days to flip: 105
10. Seattle-Tacoma-Bellevue, Wash.
- Avg. gross profit: $58,930
- Avg. days to flip: 113
Those are some fantastic paydays. Imagine how just one deal would change your families life? And, of course, you can always do more than one deal. It’s your choice…
If you’re looking to get started in “flipping foreclosures” to make some extra income, or to jump in with both feet and become a full time active investor, my advice is for you is to start in the market you know best. There is foreclosure opportunity in your own backyard. Jump in and make some fast profits.
To be a Successful Flipper, You Need to Know How to…
- Find the hidden deals that your competition is missing. (Hint: Skip looking for “listed” REO properties on the MLS, they are over priced.)
- Price your offer well below market. The trick is to build in a 15% or $30,000 (or more, as you can see above) profit when you purchase, don’t count on appreciation.
- Structure your deal and close it, without using any of your own cash or credit. Use money partners to fund your deals.
- Put a fast payday in your bank in just a few weeks by “assigning” your deal to another investor — or make a bigger payday “flipping” your deal after doing the repairs.
- Fix your house, so you don’t over spend on your repairs, and sell quickly to an eager buyer.
If you need help with these skills, I have taught many just like you. Learn more in my Free, Live Webinar “Foreclosure Investors: Make Fast Profits Now“. Make sure you register quickly as we are very limited in space. And join early to benefit from my “attendee only” bonuses.
I would love to hear your thoughts on this hot and strange market below, plus stop by Wednesday night and we will continue the discussion.