If you are looking to start flipping houses or begin a real estate project then Houston, Texas is one of the best cities in the country for real estate. Houston is known around the country for having an abundance of real estate opportunirties. There are great options for residential real estate projects as well as options for commercial real estate projects. In this guide we will walk you through the entire process of flipping houses in Houston, Texas. From identifying an opportunity, working with a hard money lenders Houston, renovating the property, and selling it.
1. Location Is Everything
One thing that often times gets overlooked is the location of the real estate property. You could find a great deal on a residiental or commercial property, but if it isn’t in a good location then it will be difficult to sell the property in the future. You must analyze the location in order to set your real estate project up for success. This will require planning at the very beginning of your project which can be difficult for many investors but it is vital to plan out the entire process at the very beginning.
This is an area that hard money lenders in Texas can help with because they should have years of experience working in the city. This experience working in Houston or other cities in Texas will allow them to provide guidance on what locations are good options for fix and flip loans. Since Houston is one of the largest cities in America and has a growing employment record, then you can use this data to prove the idea that the real estate market is growing. This means more and more people are moving to Houston, which makes it a great place for a residential real estate project.
It is important to do your research on which neighborhoods are growing and which neighborhoods you should stay clear of. Typically, you can look at areas that have seen growth in commercial real estate and then find residential neighborhoods near these office parks and shopping centers. This most likely means that individuals who are new the area because of their new job will look at buying a home in these locations near their office park. This is often times true with neighborhoods near highly rated schools. Families will actively look for homes near their kid’s school.
2. Use Renovations To Maximize Profits
When flipping a house in Houston, it is important to understand that renovations is where you can maximize or minimize your profits. This is a fine balance that you have to plan out accordingly. Often times real estate investors will think they understand what renovations will maximize their profits but each city is different. We highly recommend you speak with your hard money lender or your local contractor to see if they have any recommendations on which renovations they have seen provide the largest profit bonus from.
In Houston, as well as other Texan cities such as San Antonio, home buyers will place a higher importance on renovated kitchens, bathrooms, and backyards. When speaking with your local contractor they will be able to provide guidance on what home buyers have requested from them recently. This inside information will help you better serve home buyers in the Houston area and will make selling the home easier but also provide you a higher selling price.
3. Understand The Local Market When Selling
Understanding the local market is vital and comes back to doing your research before ever starting a project. Before you look into receiving a hard money loan you must do your research in the local market. Unfortunately, our team often hears from real estate investors who don’t do their research before starting projects and will struggle. When looking to flip a house in Houston, we highly recommend performing extensive research before you begin the project. This local market research will give you an advantage compared to competitors and will help you find great deals.
This local market research will help you find great deals when buying a house but will also help you know when you should sell the newly renovated house. You will have a better understanding of the trends of the marketplace. This can help you understand when to sell your fix and flip home or when to hold it for a better opportunity. It may sound like a basic tip, but often times we see real estate investors who don’t do their research and it causes issues for them in the long run.