Right now is a great time to be in the Massachusetts house flipping business! Real estate prices are seeing steady growth and home buyers are feeling comfortable again. The key to success in the rehabbing business is to have a great team of industry professionals around you. There are so many steps involved, from the initial purchase of the property to the final sale, that you would be wise not to do it all yourself. The best flippers in the business build a good team of experienced people they can trust and that are experts in their areas of the business. Two industry professionals every rehabber must have in their corner are a good Real Estate Broker and a Money Man… a source of quick capital.
There are many real estate agents out there but only a few that truly have the experience and understanding of the Massachusetts house flipping business. You’ll want to find an agent or team of agents that understand what an investor is looking for and can locate homes that are potential flip candidates. The real estate agent you want is the one that can immediately see potential in a rehab project but can also steer you away from potential trap properties. The team member you’ll want can help you determine the property’s ARV (after repair value), has experience with the construction process and can help you determine the proper finishes buyers are looking for in for in that particular neighborhood. A good Realtor understands you’re in the business to make a profit and will often run the numbers themselves prior to bringing you a deal. This saves you a bunch of time from checking on properties that don’t make financial sense.
Having a good private or hard money lender by your side is also curial to your success. Many of the best deals come from sellers who need out of their homes quickly. Having access to quick cash give you the ability to close sooner and make your offer more attractive than someone searching for financing. Often rehab homes are in such bad shape that banks will not loan on the property and the seller absolutely needs to find a cash offer. The best way to find money sources is through networking with other investors and industry peers. You ideally will want to make some early connections so when you have a flip deal presented, you already have the mean to pursue it.
Want to build a good team of professionals quickly? Join a local real estate investment group. Two great groups in Massachusetts are Boston Wealth Builders and Metro West Real Estate Investors. Join one or both groups and meet local real estate investing professionals. Find money sources, contractors, suppliers, legal representation and more. You can also meet other investors who could potentially become partners in your house rehabbing venture.