At WILMOTH Group, we are privy to the real estate ventures of our clientele, including those with interest in “fix and flip” deals in Indianapolis. While we aren’t in the business of locating properties to flip in Indianapolis, we understand the triumphs and tribulations of real estate owners and investors who engage in the process.
The anatomy of a fix and flip deal in Indianapolis is straightforward but involves varying degrees of time and effort. You need to locate suitable properties to flip; understand the costs, risks, and opportunities for profit; and find a buyer.
Locate Homeowners Who Need to Sell a Home Fast in Indianapolis
First, you need to find flippable properties. A home that requires cosmetic updates and minor repairs is ideal. Look at properties for sale or approach homeowners struggling with mortgages. An offer on a flippable investment property in Indianapolis allows these homeowners to walk away with equity on an unwanted property in pre-foreclosure. You might make an offer for 60% of the home’s market value, renovate the property, and sell it at or near the market value.
To find homeowners who need to sell a house fast, search public records for a notice of default. You might also send inquiries by mail, run a social media campaign, or collaborate with Joint Venture Partners who specialize in off-market, discounted properties.
In exchange for the deal, you offer homeowners:
- Fast payments and some equity on a property nearing foreclosure
- An opportunity to avoid foreclosure and preserve their FICO score
- The ability to move out sooner than may have been possible otherwise
Conduct a Walk-Through Home Inspection & Appraisal
When a homeowner with a distressed but flippable property in Indianapolis agrees to sell, ensure you know the risks with a home inspection and appraisal. From the results of the inspection, create an itemized list of rehab work and ask contractors for estimates. Schedule an appraisal to confirm what the property is worth. With these numbers, you can make an informed decision about the property and budget appropriately during the renovation stage.
Update & Advertise Flipped Property for Sale in Indianapolis
Proceed with the cosmetic updates and minor repairs. You need potential buyers, especially first-time home buyers in Indianapolis who are eligible for special programs, to be confident in their decision and satisfied with their purchase. We recommend connecting with licensed contractors and negotiating deals for future work. This ensures affordable repairs and reduces buyer risk and uncertainty—resulting in properties that sell fast!
While contractors work, consider advertising the home. If you promote the property immediately, there’s an opportunity for early buyers to take part in home rehab decisions. The sooner a qualified buyer receives pre-approval and makes a downpayment, the more options you might offer for paint color and similar features. The ability to take part in the process is a perk for many first-time buyers.
Complete the “Fix and Flip” Process in Indianapolis
Complete the sale and pay off any remaining loans or parties. You can now focus on finding another property to flip in Indianapolis.
When flipping a home, you may receive interest from multiple buyers about future, rehabbed homes for sale in Indianapolis. This allows you to approach homeowners who need to sell a distressed home in Indianapolis with a list of potential buyers lined up–a great deal for everyone. If you choose to hold onto an investment property and rent it instead, remember WILMOTH Group is ready to assist with your property management needs. We wish you fortune in all your real estate endeavors.