The Best Ways to Make Money When Flipping Houses in Detroit Michigan
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Article by, Brent Virkus of Find the Capital and TRiTON Capital Advisory
As you may know I’ve spent over 20 years in the real estate and investment business managing stock portfolios, flipping houses and developing commercial real estate. All in all I’ve been directly involved in a little north of $1 billion in real estate transactions. Needless to say I’ve learned a lot over the years…both good AND bad.
A recent article posted on Market Watch highlighted Detroit MI as one of the 10 fastest growing residential markets in the country. In fact, we came in at number 7. The growth Detroit is experiencing offers incredible opportunity in the house flipping business. We’ve even seen a study that indicates their is demand for another 10,000 residential units over the next five years.
One of the questions we get most frequently is what is the best way to make money flipping houses. So in this article I thought I would highlight the two strategies we use to produce consistent results.
First you need to make sure you are buying a property at a significant discount to market value. Most importantly you need to make sure you have the ability to add value to that property. A good article to read is Find the Capital’s 7 Keys to Flipping Houses. In this article we outline exactly how we underwrite and structure our deals.
So at this point I’m going assume you know how to acquire the house and add value to it and are at the point you want to know exactly how to make money on the Flip. There are really two simple exit strategies you should consider:
- Sell the house to an home owner looking for a turn key property. This is the simplest way to make money. You take a house that needs significant renovation work. Then buy it at the right price, fix the problems and sell it to a home owner looking for a turn key property to move into. This is your classic flip home scenario.
- Sell the house to an investor. In this situation, you buy the house, add value to it (i.e. fix it up) and then put a renter into it. At this point the house is prepped perfectly for an investor looking for a cash flowing investment as the house has been fully renovated and has a renter in place paying rent. You can also even stay on to manage the property for the investor. It’s a win win for both parties.
There you have it. It’s just that simple… Obviously we all wish it was JUST that simple!
If you’d like to learn more about how Find the Capital can help you get into the house flipping business simply click here and let us know. We’d enjoy the opportunity to help!
“It’s Official…The REAL ESTATE recovery has begun!”
So how does the every day investor take advantage of one of the greatest investment opportunities of a lifetime? Check out this FREE Video on The Individual Investors Guide to Investing in Commercial Real Estate!
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