Flipping Season Announcements: April Newsletter

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Flipping Season Announcement:
Single Family Housing is on the RISE!

We have plenty of clients who are constantly searching for the perfect fixer upper. If you’re looking to get the most bang for your buck, here are five tips that realtor.com expects to shape 2016.

1. Expect normal sales
While real estate is still expected to be on the rise, it will not be at the same pace as 2015. This isn’t a problem, just a return to more “normal” real estate environments.

2. Millenials are buying
They bought over 2 million properties last year and will continue to buy, buy, buy in 2016. Those shoppers in the 25-34 range need to be the focus of your marketing plan. Forget newspapers, radio and TV, you need to focus on social media and viral marketing.

3. Builders will be affordable again
For the past few years, builders have been able to charge more for the rising demand in luxury constructions. This is going to change in 2016. New home price points are falling and with that so will the cost of new builds.

4. Interest rates will continue to fluctuate
This means that higher cost housing will be affected when rates go up. Buyers won’t be able to afford the payments with higher interest rates. But, rates are expected to ebb and flow similar to 2015.

5. Rent is still booming
Rentals have been inflated so much in the past few years but they will continue to grow in 2016. Home purchases are the lowest they have been in years which means the rental market is starved for more properties.

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Your First Flip: Sometimes the Education is the Biggest Pay-Off

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We love this first-hand flipper’s┬ádetailed diary of how his first flip wasn’t the big pay day he had dreamed about. However, the money wasn’t that big of a deal considering the huge hands-on education he received while flipping his first home.

Sometimes, you have to just dive into your first flip or rehabilitation. There are MANY lessons you will learn along the way, just like any profession. You don’t walk into your first job knowing as much as the CEO. It all takes practice and trial and error. You’ll have big wins and hopefully not-so-big losses. But, you have to take the lesson and apply it during your next big project. This is the most valuable asset a flipper can have. If you learned the lesson once, you’re much less likely to do it again.

Now, we don’t recommend you just willy nilly make a purchase and start knocking down walls. That’s just nuts. But, we do recommend you go into your first deal with your first goal to be learning. Your second goal should be making money. This will also take a LOT of stress off of you. You’ll be more open minded to each step of the way and willing to store away lessons of how you will do it better next time.

We will do the best we can to predict how things will pan out. But, we won’t be there to hold your hand while everything unfolds. Consider us your training wheels!

For more information, give us a call or email us today for a Welcome Kit!