Flipping houses is a great way to make money. Even in Las Vegas where home prices can be relatively high, you can find a great deal and flip it for a profit. Therefore, many investors like to target foreclosures to try and buy low and sell high. However, just like with any real estate investment, there are some serious risks to flipping foreclosures in Las Vegas. To be successful at flipping foreclosed Las Vegas homes, there are 10 things you should always do:
1. Look For Homes That Are Already Bank-Owned.
Once a property has passed the foreclosure auction and reverted back to bank ownership, buyers can purchase it for a better price. However, don’t overlook auctions because you can still find great deals at these events. This process can be frustrating and time-consuming on your own so you would be wise to enlist the help of a Las Vegas Realtor with experience in foreclosures.
2. Know Your Pricing
Many times a home enters into foreclosure because it was overpriced to begin with and the property owner allowed it to revert to the bank. Know your local pricing so that you can establish if it is a good deal at auction. Again, your Las Vegas Realtor can help you with pricing.
3. Bid Low To Account For Repairs
Homeowners that went into foreclosure due to financial hardships may not have made necessary repairs or kept up with regular maintenance. Keep in mind that you may have to invest in repairs before reselling the property. To have a better idea of what those repairs will be, get a full inspection of the property.
4. Preview Property
There are times that you can preview the property prior to bidding. If you have that opportunity, take it. Not available? Ask your Las Vegas Realtor to preview the property for you. If you regularly work with a certain contractor, see if they are available to go through the preview as well to assess repair costs. Knowing what needs to be done prior to buying allows for more accurate bidding.
5. Have A Repair Service On Speed Dial
You should establish a working relationship with local contractors, electricians, and plumbers. This way if any repairs are necessary they can begin work immediately. Part of the way to make money on flipping houses is to flip them fast so constantly keep your eyes out for ways to reduce your flipping timeline.
6. Research The Neighborhood
Even if you cannot view the exact property, you will have a general idea where it is located. Research that Las Vegas neighborhood to determine what kind of demand you will get for the property once purchased or ask your Las Vegas Realtor.
7. Know All Your Fees
There will be fees associated with purchasing a home this way. Make sure you are ready to cover these additional expenses. Not all foreclosures and flips are the same so there will always be some variables to keep in mind but its still important to have a strong estimate of the most common fees.
8. Interior Decor Should Be Simple
When you refurbish and repaint the interior, keep it simple. White and tan and other neutral-based paints and color schemes will draw the most buyers. Remember to keep your personal tastes and preferences in-check when decorating the property because this property needs to impress Las Vegas buyers; not you.
9. Know Your Advertising Costs
You will have costs associated with marketing the home once it is complete. Form a solid partnership with a Las Vegas real estate agent that has experience with working with Las Vegas investors and will market your properties effectively. Make sure you hire a Las Vegas Realtor that will also have knowledge of new properties entering the foreclosure market and keep you in the loop. Keep in mind when you list your flip with your Las Vegas Realtor, they will cover the marketing costs associated with getting the property sold.
10. Not Every Purchase Is A Winner
Keep in mind that there is a potential for a purchase not to make as much money as you anticipated. If you are prepared for this, you will enjoy more overall success when flipping Las Vegas homes.
Want To Start Investing In Las Vegas Real Estate?
You know what they say, there is more than one way to skin a cat, and there is more than one way to begin investing in Las Vegas real estate. From flipping and foreclosures to rentals, we have the experience it takes to help you make the most of every real estate investment you make in Las Vegas. Whether you’re looking to dip your toes into real estate investing for the very first time or are a veteran investor in search of a partner to help you reduce your workload and maximize your profits, we would love to hear from you! For more information about flipping and foreclosures in Las Vegas, check out our Las Vegas real estate blog.