Realty411 Magazine The Best of Realty411 - Learn from Our Past Issues | Page 55
B e s t R e a l
E s t a t e L e a d s
f o r R e h a b b i n g
H o m e s
M
any real estate investors are
looking for properties that can be
renovated for a profit. Finding the
right property at the right price, in
a condition that it can be easily
updated, can be a real challenge.
Add to that the tightening of the
real estate lead market and your investment business may
see issues in the upcoming phase of the market.
If you can find the right property, money can be made
in renovating properties and reselling them. However,
this profit is dependent on the price of the original
property and many other factors. As you can imagine,
finding the right property can be even more of a
challenge if you have a limited amount of leads coming
in. There are ways to find the best real estate leads for
rehabbing homes if you know where to look.
MONEY CAN BE MADE IN REHABBING
There is no doubt that money can be made by
rehabbing properties. According to an article published
by Teresa Mears, the profit can be relatively high. She
writes, “Investors flipped 156,862 singlefamily homes
in 2013, according to RealtyTrac, which defined a
flipped home as one bought and sold twice within six
months. The number of flips was up 16 percent from
By Leon McKenzie
U.S. Probate Leads
2012 and 114 percent from 2011. The average gross profit
for a completed flip or more accurately, the difference
between the first sales price and the second sales price
was $58, 081.”
In fact, investors are even taking advantage of higher
priced homes in metropolitan areas that yield a high profit
and that are not a result of a foreclosure. Mears said, “Only
21 percent of those flips were forclosure properties,”
according to RealtyTrac, down from 32 percent in 2011.
And it has proved much more popular in some cities than
others. Home flipping was up 141 percent in Virginia
Beach, Va., 92 percent in Jacksonville, Fla., 88 percent in
Baltimore and 79 percent in Atlanta. But it fell 43 percent
in Philadelphia, 32 percent in Phoenix, 17 percent in
Tampa, Fla., and Houston, and 15 percent in Denver. In
2013, there was a bigger increase in the flipping of
properties that sold for $400,000 or more than in lower
priced properties.”
FINDING THE RIGHT PROPERTY TO
REHAB CAN BE A CHALLENGE
Many investors who are just getting started in property
renovation believe that they will have plenty of options
and a large number of homes of which to choose. That is
simply not the case. Real estate investors are seeing that
leads in many areas are simply drying up. >
55