How to Find Houses to Flip: A Broker’s Guide

Flipping houses is one of the most exciting ways to make money in real estate. But let’s be real—it’s not as simple as buying a run-down property, slapping on a fresh coat of paint, and selling it for a massive profit. The truth is, finding the right property to flip is half the battle. And as a broker, you’re in the perfect position to help your clients navigate this process.

Here in this blog, we'll take you through the best practices of finding homes to flip and offer tips to make your clients successful. Whether they're seasoned investors or beginners flipping homes, your guidance can be the key to their success.

Why Finding the Right Property Matters

House flipping can be extremely lucrative, but it also carries risks. The wrong home can result in expensive repairs, holdups, and even monetary losses. For that reason alone, finding a suitable property matters so much. 

Here’s what your clients should look for in a flip property:

• Distressed or Undervalued: Properties that need work are often sold below market value, leaving room for profit.
• Good Location: A property in a desirable neighborhood is easier to sell and more likely to appreciate in value.
• Manageable Repairs: Look for properties that need cosmetic updates rather than major structural repairs.

By helping your clients find the right properties, you’re setting them up for success from the start.

Where to Find Houses to Flip

There are numerous ways of finding flippable homes, but not everything is equal in terms of availability and reliability. These are among the best possible sources for clients:

1. Online Listings

The internet is a treasure trove for property hunting, but one must be careful to use reliable sources. Here are a few websites your clients can look into:

• Zillow: With its advanced filters, Zillow makes it easy to find distressed properties in your clients’ target areas.
• Realtor.com: This platform offers a wide range of listings, including foreclosures and fixer-uppers.
• Trulia: Known for its user-friendly app, Trulia is a great option for tech-savvy investors.

How Brokers Can Help:

• Share links to trusted listing platforms with your clients.
• Teach your clients how to use filters to find distressed or undervalued properties.

2. Auctions and Foreclosures

Auctions and foreclosures are an excellent method of discovering properties at prices below market value. But they carry risks.

Pros:

• Lower Prices: Foreclosed properties are often sold at a discount.
• Fast Process: Auctions can close quickly, allowing your clients to move fast on opportunities.

Cons:

• Limited Inspection: Some auctions don’t allow property inspections, which can lead to costly surprises.
• Cash Requirements: Many auctions require cash payments, which can be a barrier for some investors.

How Brokers Can Help:

• Connect your clients with auction houses or foreclosure listings in their area.
• Advise your clients to set a strict budget and stick to it.

3. Real Estate Networking

Networking is possibly the most overlooked method of acquiring properties to flip. By attending real estate investment groups or meetups in their area, clients can network with sellers, contractors, and other investors.

How Brokers Can Help:

• Introduce your clients to local real estate investment groups.
• Share tips on building relationships with other professionals in the industry.

4. REO Listings

REO (Real Estate Owned) properties are residential properties that were repossessed by banks due to foreclosure. REO properties are usually discounted, which is an excellent option for flippers.

How Brokers Can Help:

• Monitor REO listings in your clients’ target areas.
• Help your clients negotiate with banks to secure the best deal.

5. Working Independently

Occasionally, the best bargain is found in off-market property. By getting in touch with homeowners, your clients are able to locate sellers who must sell quickly because of divorce, inheritance, or relocation.

How Brokers Can Help:

• Teach your clients how to approach homeowners directly.
• Provide scripts or templates for reaching out to potential sellers.

Tips for Successfully Flipping Properties

Acquiring the right property is merely the beginning. These are some strategies that can help your clients be successful in their flipping endeavors:

1. Analyze the Market

Prior to purchasing a property, your customers ought to study the local market. This involves learning about buyer preferences, rental fees, and demand within the neighborhood.

How Brokers Can Help:

• Provide market reports or data to help your clients make informed decisions.
• Share insights on up-and-coming neighborhoods with strong growth potential.

2. Calculate the ROI

Your customers should always calculate the possible return on investment (ROI) prior to purchasing a property. This involves approximating repair prices, holding costs, and the After-Repair Value (ARV).

How Brokers Can Help:

• Provide templates or tools for calculating ROI.
• Help your clients set realistic profit margins.

3. Inspect the Property

A careful inspection of the property will prevent any nasty surprises down the road. Your clients will need to find evidence of structural issues, aging systems, and other problems that might drain their profit.

How Brokers Can Help:

• Recommend trusted inspectors in your area.
• Advise your clients to include a contingency fund in their budget for unexpected repairs.

4. Focus on Location

The right location can make or break a flip. Your clients should target neighborhoods that have low crime levels, high-rated schools, and good proximity to amenities.

How Brokers Can Help:

• Share data on neighborhood trends and growth potential.
• Highlight properties in desirable locations.

Flipping houses can be very lucrative, but it's not without its challenges. By locating homes for your clients to flip and assisting them through the process, you can position them to succeed and foster healthier, more profitable relationships.

Why Brokers Should Partner With RCN Capital

At RCN Capital, we know the special needs of real estate investors—and the brokers that serve them. Here's why brokers prefer to work with us:

• Flexible Programs: From fix-and-flip financing to long-term rental funding, we provide solutions to suit your client's requirements.
• Fast Closings: We can close loans in as few as 10 business days, helping your clients move quickly on opportunities.
• Broker-Friendly: We value our relationships with brokers and offer competitive commissions, fast approvals, and dedicated support.

By partnering with RCN Capital, you can provide your clients with the financing solutions they need to succeed in the competitive world of real estate investing.

Ready to advance your brokerage? Connect with us today to discuss our real estate financing solutions and how we can help you grow your business.