How to Find a Fix & Flip in Denver
Typically, a fix & flip isn’t found on the MLS (multi-listing services) and they are definitely not found on Zillow or Trulia. The two best ways to find a distressed property is to either attend foreclosure auctions or work closely with a real estate agent who has access to off-market deals, like a FI Team agent.
Foreclosure Auctions
Similar to any auction you’d attend the house goes up for auction, people place bids and the highest bid wins. Before going to an auction you should prepare yourself.
1. Get your finances in order – most auctions will only accept cash, cashiers checks or money orders and you will need proof of funds prior to bidding.
2. Be prepared to buy sight unseen – unlike purchasing property the traditional way with time to look over the home or have a professional inspection, you’ll likely be buying the home sight unseen. You should try to do a drive by of the property prior to the auction. Take in clues of the upkeep of the exterior, the overall neighborhood and possibly peek in the windows if it’s uninhabited.
3. Expect the unexpected – you get what you get at a foreclosure.
Partnering With an Agent
Realtors can save you time and money finding you the right property for a flip. Working with a realtor can also reduce your risk of a flop because they can provide their expertise on what properties will likely have the best return on investment. Partnering with an agent is loaded with other benefits:
1. Access to off-market properties – realtors often have access to properties that are not listed on public websites or the MLS. This means they can present investors with more opportunities to find distressed properties suitable for your project. Join The FI Team off-market deal list to learn about deals when our clients do.
2. Trusted referral network – a realtor who works with flips can provide recommendations to other professionals who can assist with the fix and flip process, such as contractors, home inspectors and lenders. Check out The FI Team’s list of preferred Denver vendors.
3. Negotiation skills – realtors can negotiate on behalf of their clients to help them secure a property at the best possible price. They can also assist with negotiating contracts and other legal documents to ensure that the investor’s interests are protected.