Are you taking too long to flip properties?
How long should it take to flip houses? And what are the costly perils of taking too long to turn real estate deals around?
BloombergBusiness recently announced that it’s only taking a few years to flip NYC condos for big profits. Most wouldn’t consider that ‘flipping’. That’s more like buy and hold. In fact; you could probably build a few grand spec homes from scratch with that type of timeline.
In the past RealtyTrac has said the average turn time for flipping houses was 106 days. Redfin says that new home listings shot up 12% in February 2015. However, it also describes buyers “coming in like a lion.” A 44% year over year surge in home showings and a 36% year over year increase in signed offers suggests a looming inventory shortage. And the National Association of Realtors says the average Days on Market (DOM) fell to 89 days in March. That’s ahead of peak spring and summer buying season. So this number should fall even further.
Traditional real estate rehabbing is valuable and needed. And it can still be profitable in certain scenarios. But it may not be the fastest way to turn around deals. And clearly once a rehab is done there is no reason it should be taking real estate investors more than 90 days to flip these houses.
Check out these new hard money loans for fixing and flipping real estate
Meanwhile property wholesalers using Best Transaction Funding are flipping properties in just 1-3 days. They are able to do this because of the capital they are able to leverage, their strategy, and perhaps most of all because they focus on building buyer lists and pre-selling their deals. Let’s be honest; every day holding a property, and every contract signed brings some form of risk. If you don’t already have a concrete exit before going in, you are just speculating, versus investing.
With wholesaling you are almost out before you are in. That presents the lowest possible level of risk. Fixing and flipping is still great, but the more flips you do per year the higher your overall profits are. Do you want to flip your money 12 times a year, or less than once? There should be no reason to be flipping the same money less than four times a year.
Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.
"I want thank you for the excellent service I received from Best Transaction Funding.The quick response I received from your company from the beginning of the transaction and to the end was unbelievable. I also want to give a special compliment to you as well. You went to great lengths to keep me informed and gave my title company all the information they needed to complete a successful closing. I cannot express how thankful I am. Such service builds great working relationships. I will definitely recommend Best Transaction Funding to all my fellow investors. Thank You."
- Frank Olaitan, Real Estate Investor, MD
"I can't thank you and your company enough for providing funding for our latest project, and right at the last minute. You came through with funding in less than 24 hours and coordinated with the closing agent and attorneys like you had been involved with our project the entire way. I'll know exactly where to call for the funding we'll need for our next project."
- Dave Pricken, Real Estate Investor, NJ
"Thank you so much! I just had a talk with our Realtor on both properties and told him amazing things about your company!... Normally I rehab the houses and re resells them. I just don't have the patience for that work anymore. This [transactional funding] is such a better way for me and less stress."
- Steven Kupecz, Real Estate Investor, TN
"We want to thank you for the exceptional customer service you provided. No one comes close. We had contacted a competitor the same time we contacted your company. Your company responded with in a few minutes while the competitor has yet to respond weeks later even after multiple phone calls and emails. Thanks again for the unmatched customer service."
"We had looked into several transaction lenders for a couple properties we were trying to flip. Your company was the most responsive and had the best pricing. Even though we had logistics issues with the B/C lender, your company acted very professionally and handled our requests beyond our expectations."
"Thank you for your commitment to an excellent customer experience."
- Phoenix Properties, LLC, Ronald Destefani, Investor, PA
"I was studying on how transactional funding works and you guys had the best and most thorough explanations posted so I could fully understand the details in back to back closing. I'd already started setting everything up but your video confirmed that I'm on the right track."
- La'Donna Turnipseed-Scott, Investor, LA
"....a few months back, I happened upon a video, on your site, regarding the use of transactional funding with Hud properties; and I found myself replaying the video over and over because of the value that I saw in the message...it actually explained the process, step-by-step on how to submit a Hud deal by using transactional funding. Once I completed the video, my initial response was to take immediate action by duplicating what I had learned from the video into real time. So I did some research on properties in a market where I knew I had buyers; and put together a hud deal. I then located a realtor able and willing to submit my bid online and within a couple of days, to my surprise, received a call telling me that I had won – my very 1st Hud bid."
"To you I say, ”KUDOS to Best Transactional Funding and Thank you for providing the education and services to Real Estate Entrepreneurs like me. Please keep up the good work!'"
- T. A. Davis, Investor, NJ
"You each deserve high marks for your wonderfully quick response time to each of our questions and requests! You hit home runs with us! Your application system was easy to use. Our deal met your qualifications and every time Rob Kozak or any member of Mystic Properties, LLC phoned, we received a "real" person dialing back to speak with us.
Your patience and persistence were exceptional in dealing with our business interests. Thank you for such great customer service! We look forward to working with your staff, again, in the future. We like referring people to you, as us, our team would have missed-out on an excellent earning opportunity.
Your help negotiating with our title company made our back-to-back deal, finally happen. People noticed on settlement day how effectively and efficiently your part of the transaction was organized and executed. Again, thank you for truthfully being the "BEST" at what you do!"
- Diane McAdams, Mystic Properties, LLC, Real Estate Investor, Pennsylvania
"Boy, you guys are impressive! I can’t thank you enough for scrambling and getting my deal done at the last minute like that. You and your team were awesome!"
- Donna Bauer, The NoteBuyer Inc., Real Estate Investor, OH
"Thank you so much for working so diligently with me. Your services really are the "BEST". I look forward to working with you in the near future!"
- Ericka B., Real Estate Investor, CA