A good fix and flip job can make all the difference; it can take a neglected property and make it go on the market for twice its original value.
Hard money lenders recognize the potential of such projects and frequently fund their proceedings, be it a small update or a complete reconstruction.
With such a big demand for fix and flip loans in South Carolina, you should make the most of the opportunity for your renovation plans and ensure your property earns a good value on the housing market.
Here’s why and how you should be utilizing a fix and flip loan efficiently.
1. Why Get Such a Loan in South Carolina?
South Carolina has a booming population of 5.47 million with cities such as Columbia, Charleston, and Greenville experiencing steady growth and business expansion; the state offers promising chances to fix and flip investors due to the high demand.
Since property prices are low, investors can benefit from the opportunity by renovating spaces to sell at a higher rate.
From an investment perspective, South Carolina has been a go-to option for people for retirement and tourism; the state’s busy nature increases the need for rest houses, hotels, Airbnbs, and retirement homes. Many even eye the location for their first homes, leading to the state ranking among the top 10 choices for homes back in 2022.
2. Building the Right Strategy
There are various things to consider when managing your fix and flip loan. Here are a few strategies that prove effective:
- Timing the Market
Timing is a crucial factor in the housing market; it plays a great part in deciding how deals proceed. If you’re looking for easily negotiable prices, look for property during the fall and winter seasons as competition is lower and sellers are willing to adjust their rates.
If you purchase in winter, you can easily have the renovations done by the spring season and have the property back on the market. Since this period sees a higher interest rate from buyers, you’re likely to sell the property on time and for a decent rate.
Beyond seasonal changes, it is also useful to keep an eye on economic indicators such as mortgage rates or employer expansions as these affect housing demands.
- Renovation Plan
A good renovation plan doesn’t begin with determining what needs fixing; it’s by studying your property’s location and using that to your advantage. Locations play a great part in determining the target audience of your property; a commercial location would attract businesses or a place like the suburbs will feel inviting to families.
Be mindful of how much you invest in the property; a high-ROI upgrade in a mid-tier neighborhood will not work out in your favor. Therefore, it’s suggested that you focus on using fix and flip loans to bring the property to scale with surrounding houses while ensuring it remains the ideal option.
To ensure the property aligns with South Carolina’s building codes, work with a licensed contractor so that renovations aren’t delayed due to permit issues. Similarly, keep aside a small fraction of the loan for any accidents or damage to have them quickly assessed.
- Resale Tactics
Benefitting from a fix and flip loan isn’t limited to the amount of financial assistance you acquire for your renovations; the way you resell your property greatly determines how much profit you make from the project.
There are various ways to boost the property’s selling point; one of them is staging the home. You can do this by hiring a professional photographer and offering descriptions that sell the idea of a supposed future in the house through a favorable description. The technique helps buyers easily visualize the space as their own by building an emotional connection.
Make sure you’re updated on housing prices not only during the buying stage but the selling stage. Compare your property price to similar ones and ensure it is meeting current buyer expectations.
If you need assistance connecting with potential clients in the area, appoint a real estate agent to guide you.
Ready to Make the Most of Your Property
A good fix and flip project isn’t just a funded renovation project, it’s a well-planned property buying and reselling method full of risk and profit. All that matters in the process is using your tools wisely and making the most of your resources to your advantage.
Intense competition in the housing market may make you feel intimidated about what money lenders to seek; however, for a reliable and experienced service, we recommend working with Insula Capital Group.
Known as the go-to for flip and fix loans in South Carolina, Insula Capital Group’s funding program funds up to 75% of the After Repair Value of your renovation project. With no junk fees or prepayment penalties, they provide you the transparency and ease you need for a smooth fix and flip project!
Want an estimated calculation of your revamp plans? Check out their fix and flip calculator and get a direct quote!
