The most successful house flippers have a unique combination of skills that help them navigate the challenges and opportunities in the real estate market.
You don’t need to be naturally good at these skills—they all can be learned and honed as you move through your career.
Whether you want to enter the world of fix-and-flips or are already in it and eager to make these types of investments work, let’s dive into the five characteristics you need to have to truly excel.Get Started with Park Place Finance
1. Financially savvy
Being financially savvy involves multiple aspects of real estate investing.
Let’s take a look at a few of the most important in the context of house flipping.
Successful house flippers have a deep understanding of the costs involved in a renovation project, including purchase prices, materials, labor, and holding costs.
They are skilled negotiators who not only know how to get the best price from a seller, but how to price their properties for maximum profitability.
They know how to create and manage a budget, as well as when to stick to the budget and when it’s acceptable to take a calculated risk.
Skilled house flippers are well-versed in the financing options available to them in the current market, and know how to secure the right type of financing for each project.
They have established a partnership with a reputable, experienced hard money lender to leverage the speed and flexibility of fix-and-flip loans, bridge loans, or DSCR loans.
They also know when it’s reasonable to use a traditional source of financing.
Financial savvy includes the ability to mitigate financial risks.
Successful flippers have contingency plans in place, maintain adequate cash reserves, and understand the financial implications of unforeseen challenges.
They also have diverse portfolios filled with a range of property types, locations, and investment types to balance risk.
2. Not afraid to take risks
Flipping houses involves navigating uncertain markets and unexpected challenges.
While they are never reckless with their investments, successful house flippers are willing to take calculated risks and are adaptable to changing circumstances.
Successful house flippers are able to assess the potential rewards and consequences of each investment and make informed decisions from their research and experience.
They understand when a “wait-and-see” approach is best, and when to take action.
3. Relationship builders
Successful real estate investors are backed by a network of fellow professionals they call on for support and advice.
This group of individuals, including a real estate agent, hard money lender, and other real estate investors, can share their insights, challenges, successes, and failures so you can avoid a few of your failures down the road.
These relationships also can lead to valuable referrals and partnerships.
On the other hand, an investor’s people skills must extend to negotiations with sellers and other key players as well.
Building rapport and negotiation skills helps flippers secure favorable deals when purchasing properties and managing project costs.
You’re not always going to be comfortable with negotiations or other aspects of the fix-and-flip process, but the more you do it, the more confident you will feel.
4. Skilled researchers
The only way to build the characteristics of a successful house flipper is to do the work.
Skilled flippers are skilled researchers who know the ins and outs of their target markets because they have analyzed local trends, property values, neighborhood data, and market conditions to identify opportunities.
Flippers also conduct meticulous due diligence on properties before they make a purchase. This includes property inspections, title searches, and the legal aspects of the property.
Of course, this research also extends to budgeting: Skilled flippers know material costs and labor rates so they accurately estimate renovation costs.
This extensive research helps them create realistic budgets and avoid financial surprises during the project.
If this research seems overwhelming, remember the process. If you’re at the beginning of your journey, building your network of support and reading books on real estate investing can help you get your footing.
5. Passionate about their projects
If you don’t have a passion for the hard work and satisfaction of fixing and flipping properties, it will be much more difficult to achieve success.
The most successful house flippers are passionate about the work they are doing, from all of the tiny details to the big-picture vision of what the property can become.
Successful house flippers have the following passion-fueled traits:
- Attention to detail
- Project management
These investors take pride in executing high-quality renovations and ensuring that the property is appealing to potential buyers.
They can take their vision of what the property could be and the creativity and drive to transform it into this property.
They also are motivated to see their projects through to the end, because they are committed to the process and care about the outcome.
Flippers should have discernment and know from experience when to move on or lower a price and when to be patient.
Partner with Park Place Finance for your next fix-and-flip adventure
Hard money lenders understand the hard work and passion involved in real estate investing—and especially in fix-and-flip investments.
If you’re ready to take the next steps in your investment journey, Park Place Finance is here to help.
We’re a direct hard money lender with in-house capital. We have helped real estate investors across the nation reach their goals throughout 17 years in business and over $1 billion in loans funded—and we hope yours is next!
Park Place Finance offers the following loans to investors:
When you choose to work with us, you can rest assured that a team of real people will be dedicated to funding your deal as quickly as possible.
Once submitted, your dedicated account executive will be in touch. You can also give us a call now at 866-407-1599.
We look forward to your partnership!