What is House Flipping?
Corelogic defines house flipping as "the act of acquiring a home, performing renovations and repairs then selling it for a profit, usually during a short time period." Flipping houses is a great way to roll your sleeves up and make some extra money on the side. Should you gain the necessary knowledge, skills, and experience, you may even be able to make it your main source of income.
How To Get Started
The first thing that you will need to do if you are interested in flipping houses is to assemble a team in order to ensure that you have all the necessary people in place to assist you. These people will depend on your own individual skills and experience. It will also depend on whether you would prefer to spend money to get things done or do them yourself. Jobs like handy work and landscaping can surely be outsourced, but are also great opportunities to save money. The main people you will almost definitely need include:
- Real Estate Agent: Depending how familiar you are with the real estate market in your area, a real estate agent will be helpful in helping you pick the best areas, neighborhoods, etc. for your investment.
- Accountant: Considering the reason that you are flipping a house is to turn a profit, number crunching will be an integral part of your process. An accountant will be able to keep track of all costs associated with the project and likely be able to predict your profit margin.
- General Contractor: This will be the key person in planning and seeing the renovation through.
- Lender: More than likely, you are going to need a loan to help with the costs of your project, mainly the purchasing cost of the home. The lending process can oftentimes be lengthy and pricey, so it is important to choose wisely.
Advantages of Choosing Fund That Flip
Once you have started flipping houses, chances are, you will want to do it again. After proving that you have the ability to successfully flip a house, Fund That Flip is a great place to look for your next short-term loan. With funding in more than 30 states (including New Jersey), Fund That Flip can provide your loan in as little as 7 days, funding up to 90% of the purchase and 100% of the rehab. Check out some of the projects we have already funded in New Jersey below!
New Jersey House Flip That Sold for 4x the Purchase Price
The fire damage on this home was a great opportunity for the borrower to transform this New Jersey property. After successfully completing the project, the customer was able to sell for 4x the purchase price. This home features a newly designed kitchen with updated cabinets, flooring, lighting and appliances. We're particularly impressed how the borrower transformed a dark, cramped structure into a welcoming, modern, open space.
House Flip in New Jersey That Sold for 1.5x the Loan Cost
This repeat borrower saw a fantastic opportunity to rehab this property and turn a profit through financing with a fix-and-flip loan. After successfully completing the project, the customer was able to sell the property for over 1.5X the loan cost. This home has an open floor plan with beautiful finishes, with high-end details, such as the double wine fridge in the world-class kitchen. The kitchen features a large island, two sinks, high-end stainless steel appliances and an amazing stove and oven set.
Another Successful Single-Family House Flip in New Jersey
On this property, our borrower identified an unmissable investment opportunity to design and build a single-family home in New Jersey. After successfully completing the project, the customer was able to sell for three times the loan amount. The finished project features an open kitchen with high-end appliances, ample counter space and cabinets. The main living areas are spacious and complemented by the modern color palette, along with natural lighting throughout.
3 Stats You Need To Know for Flipping Houses in New Jersey
According to Clever Real Estate, New Jersey is a great place to flip houses. Before you get started, here are a few statistics you should know:
- The average price of a home is about $326,000 across the state.
- The state saw a 20-year unemployment low of 4% in 2019.
- Home prices have risen by 4-5% in the last year.
New Jersey has beautiful rural and high-class metro areas, with average home values of $100,000 and $600,000, respectively.
Are You Ready to Start Flipping Homes in
Looking for an alternative to stocks? Investors can earn 8-10% annual returns on pre-vetted, low LTV, real estate-secured loans. Fund That Flip offers industry-leading visibility into each project, enabling investors to be highly selective in the loans they choose to fund. Click below to make an investment today!