You’ve decided to invest your money in flipping a property, and now there’s a dozen things on your to-do list, and even more questions you need answered.
The most common question that house flippers ask is, “how long will it take to flip a house”? Realistically, the time it takes to flip an investment property before sale can vary from project to project, so it is hard to give a definitive answer. However, this guide will hopefully give you a rough idea on a realistic turnaround time for your investment so you can sell your house fast.
Step one, buying the property: 5-10 days.
Now, it’s important to keep in mind that this estimation of 5-10 days is very optimistic, and is likely to vary if you acquire your property through a traditional route. If you decide to purchase your investment property through a realtor, auction, or self-research, this can greatly extend the timeframe, and can sometimes take months to find a good deal.
Purchasing an ideal property from a wholesaler is the most time-efficient way to get started on your investment strategy. New Western Acquisitions is such a firm that offers exclusive, off-market properties that aren’t available to the public. This, in itself, will save you the time and hassle of bidding wars, or racing against other investors who are also in the market for properties of their own. With the use of New Western, finding the perfect property and closing the deal can be done quickly, often within ten days’ time.
Using a hard money loan is just like using cash to purchase your property, and is the best option to save time on your investment journey. With the importance of time in mind, financing from Sherman Bridge Lending can close the deal for your financing in just seven days.
The renovation: 45 – 90 days.
The key to getting a renovation done quickly is to have an organized crew ready, and on-hand. With the right resources, and connections to good workmen who know how to efficiently complete what you want, the required rehab can be completely quickly. To get started on a project, you must wait for the chosen contractor to put a bid together, which is up to you to approve. Once the job is started, be wary of time burners and unexpected issues that will add time to the job. Common things to come up include surprise structural damage to the house, plumbing, electrical, and/or roof issues.
Selling your property: 45 days – 6 months.
This is where it gets tricky. Depending on how you decide to go about selling your property can determine how quickly, or slowly, this process can be done. If you decide to list your house on MLS, you can pay for different lengths of the listing that vary anywhere from 6 months to 12 months. For the sake of estimation, let’s say you self-advertise for ten days, after which you have a few good offers in hand. You enter escrow with a financed buyer who takes 21-45 days to close (depending on their financing). If everything goes smoothly, and escrow closes on time or ahead of schedule, you could mark this sale off your to-do list within 90 days, and proudly place the “sold” sign in the yard of the house you successfully flipped.
What else do you need to know about flipping a property?
You’ve made a huge leap to flip an investment property, so naturally, you want to be sure on all the details. Luckily, the resources provided at Sherman Bridge University brings you a checklist of all you need to do to successfully rehab a property. While there, go ahead and preview what’s to come with your investment, we have tools to calculate your net worth and your cash flow.