Sometimes it seems like there are more deals then there are investors and it’s hard to figure out how we can buy the house to flip it. Other times, it seems like there isn’t a single home available out there… That’s what I call a dry spell, and that’s totally where we are at right now. I still have four flips currently in progress so I’m keeping plenty busy, but it’s always important to have the next deal lined up and ‘on deck’. Everyday I check the MLS, and everyday for the past couple weeks it seems like there is nothing out there to buy that makes sense. It doesn’t really concern me because this has happened before, but it definitely makes it more challenging. It’s times like this that I will often resort to auction websites and/or even look into possible ‘for sale by owner’ opportunities. Those don’t typically offer many real deals, but occasionally something makes sense.
The important thing as a flipper is to stay focused on the homes in progress while still looking ahead for the next acquisitions. It’s important not to have gaps between projects because gaps mean no work and no money. However, it’s also important to always consider the market… Why is there this sudden dry spell? Is it because interest rates have increased slightly? They are no longer at record lows, but they are still very reasonable. Is it because the deals are drying up? There are always ugly homes out there and always people who need to sell. Or is it because of the holiday season? Certain times of the year are more popular for buying a home than others. Most people don’t want to be moving during November and December because they want to enjoy the holidays without unpacking 100 boxes, which means that September and October are the ideal time to buy. However, January and February people have more time and they’ve enjoyed the holidays at relative’s potentially “nicer” homes which has made them want to upgrade so that they have the space and amenities to host the holidays next year instead.
Whatever the reason, it’s all part of the process. Flipping is a constantly changing business and it will always be like that… Which is part of the excitement!
MY FLIP TIP: Dont’ get discouraged. Keep looking and you’ll find what you need.