Tips for Your Next Fix and Flip

Experienced investors all know that you must choose your projects very carefully in order to make a substantial profit. If you are relatively new to real estate, it can greatly benefit you to learn from the successes and failures of those who have already done it.

Making a profit in residential real estate is multifaceted. It’s part determination, part luck, and the rest is proper preparation and planning. It’s obvious that the luck portion is completely out of your control, but the rest is well within reach. With a well thought out plan, you can increase your chances of having your investment becoming a success.

When it comes to helping you succeed with any resource possible, Loan Ranger Capital is there to help. As a Texas based hard money lender, we give loans to investors looking to make money by flipping houses. Whether it’s your first fix and flip or you’ve been at it for year, Loan Ranger Capital is dedicated to helping you succeed. With that said here are a few tips that we’ve seen result in the most successful Texas flips..

Location, Location, Location! There are many things you can do to a property. You can renovate the bathrooms, add hardwood floor, or even change the layout. However, you can’t take the beautiful house and put it somewhere else. It’s always important to consider the desirability of any area when selecting an investment property..

Don’t build YOUR dream house. Avoid putting more money into a house than you estimate is reasonable for the general location. Over-improving a house can have diminishing returns which will eat into your bottom line in the long run. Remember you want the home to be attractive to the general public, not just you.

Do your homework on value! Most successful flippers in Texas will have an estimated “after repair value” well before they start the project. Unfortunately, coming up with this value too late can lead to an unsuccessful project and even losing money. Get a good idea of prices in the neighborhood prior to purchasing by looking for recently sold comparable properties (it helps even more if they were rehabbed).
Find any skeletons in the closet. Hopefully not literally, but find out if there are any issues before buying. It’s not realistic to buy a home with no issues (otherwise it wouldn’t be a fix and flip) but make sure you budget for all of these.

By sticking to these tips from Loan Ranger Capital you can help avoid issues in investing and get your project started off on the right foot. While we are a hard money lender, we want to see all of our borrowers succeed. Call today if you have any questions or to get started investing in real estate today!

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