If you are a regular watcher of the many house flipping TV shows that have become popular over the years, you’ve witnessed countless episodes where a successful fix-and-flip investor finds a distressed property at a great price, renovates the property within a few weeks, then hosts one super successful open house and sells their gorgeously staged house flip for top dollar. The episode usually wraps up with the house flipper celebrating their hefty ROI as they move on to the next fix-and-flip project.
Although examples of lucrative, streamlined house flipping success absolutely do happen in the real world, every successful fix-and-flip investor knows that there are tons of behind-the-scenes challenges and lots of hard work, knowledge and expertise that go into maximizing your ROI on a house flip. Some of this you absolutely can learn from watching TV house flippers overcome challenges and achieve success, but, of course, there isn’t enough time in a 30-minute segment to share what really goes into building a successful house flipping business.
If you are a real estate entrepreneur who is committed to succeeding at flipping houses, you can benefit greatly from networking with other fix-and-flip investors who are as serious about their house flipping business as you are. Investor groups are a great resource for connecting with like-minded fix-and-flip professionals whose business goals and ambitions align closely with your own, where house flipping challenges and successes are discussed, and real world problems and solutions are explored.
Here are five ways you can benefit from joining a local real estate investors group:
- Expand Your Network of Industry Professionals
A real estate investors group will be comprised of professionals from every part of the fix-and-flip industry, each seeking to connect with other industry professionals for mutually-beneficial interactions. A high-functioning, well-established investors group will include house flippers, contractors, real estate agents, property wholesalers, capital investors and other individuals from whom you can gain valuable knowledge and advice, and with whom you can establish business relationships.
- Find Distressed Properties for Sale
Finding a property to flip is often a significant hurdle for a fix-and-flip investor, especially if you are operating in a very competitive market where viable distressed properties are harder to come by. In an investors group, you will be networking and building relationships with local professionals who can alert you to properties as they become available. Successful fix-and-flip investors come to rely on their network of agents, wholesalers, contractors and other business connections to bring them potential deals.
- Find Fix-and-Flip Funding
Capital investors looking for real estate deals to participate financially in often join investors groups to connect with serious house flippers. Even if your group does not include these capital investors, you will meet other house flippers who can share strategies they’ve used to finance their fix-and-flip projects. If you have questions about fix-and-flip financing, other investors in your network will have likely had experiences with conventional and hard money lenders, and you can ask them for lender referrals, and learn more about the borrowing process and whether a fix-and-flip loan might be a viable option for you.
- Gain Invaluable Knowledge and Advice
There are countless details that go into finding, funding and flipping a distressed property. Whether its knowing how to accurately estimate after repair value (ARV) , determining how much to spend on renovations , where to source materials at the best prices or finding a real estate agent who can help you maximize your ROI when its time to list and sell your house flip, an investors group will be filled with professionals whose expertise you can benefit from.
- Sell Your House Flip Faster
When it comes down to it, selling your house flip quickly is a critical part of your success as a fix-and-flip investor. If you find a great property and make awesome renovations, only to have it sit on the market for months, your project’s ROI will suffer and so will your business. Joining an investors group puts you in touch with a large group that has established connections in the local real estate market, making it much easier for you to quickly find a buyer for the property you’ve flipped.
Perform Due Diligence Before Joining an Investors Group
Networking with and learning fix-and-flip tips from local real estate investors who have built successful house flipping businesses is a great way to build your skill set and stay motivated to achieve your goals, but not every “investors group” is a gathering of like-minded professionals looking to network. Be aware that there are some for-profit companies who advertise “join an investors group” but their goal is to sell you a house flipping education program. You may or may not want to invest in what these companies are selling, but just be aware that if you are looking for a not-for-profit “meet up” with other investors, you should ask plenty of questions and do some research before joining.