Find properties with the highest ROI using a new free tool, FlipScout.

Flipping Houses In Joliet

How To Find Ideal Properties To Flip In Joliet

If you're looking for guidance on how to flip houses in Joliet, you're in the right place

Of all the challenges that a fix and flip investor will face, finding a suitable property is arguably the most difficult. It’s the first step in every flip, acting as the biggest domino in a chain of events that will ultimately determine how much money you make.

The goal of this guide is to help you find properties have the potential to be flipped. Naturally there are other important steps like finding a reliable contractor and selling the property before your loan expires, but you can only reach these milestones after selecting the right property in the first place.

The Basics of Flipping Houses In Joliet

The process of flipping houses in Illinois can be boiled down to a few key steps:

  1. Find a property that is undervalued
  2. Source funding from a reputable lender
  3. Purchase the property for a price that makes it possible to generate profit
  4. Complete renovations that will increase the after repair value
  5. Find buyers for the property and sell it for a healthy profit margin

How To Find Properties To Flip In Joliet

Use New Silver's FlipScout

Finding a suitable property to flip in Illinois can be the most challenging part of the process, especially for first time flippers. This is why New Silver built FlipScout.

The primary purpose of FlipScout is to help property investors identify houses that have the potential to be purchased for less than the market value of similar houses in the area. Think of it as a search engine that has been custom made specifically for property flippers.

Although the service is free, you do need to login to the New Silver website in order to access this groundbreaking feature. Once you are logged in, you can then search for properties using specific features such as foreclosure status, time on the market and after repair value.

FlipScout Features

Foreclosure Filter

Houses in foreclosure tend to sell for less than the market value of the house. This is mainly because when a property enters foreclosure status, the primary concern of the loan provider is to sell the property as quickly as possible to avoid making a loss. This can open up opportunities for flippers that know how to identify these properties.

Time On The Market

Houses that have been on the market for more than 60 days are ripe for an offer that is below the listed price. When a house is listed for too long, it indicates that there is a mismatch between the estimated value (set by the seller) and the market value (what the market is willing to pay for the property).

After Repair Value (ARV)

Having an accurate estimate of the After Repair Value (ARV) can make or break a potential flip. In the case of Flip Finder, it automatically refers to comparable properties in the area to workout the ARV. Naturally you will also need to use your own judgement when working out the ARV, but for a quick estimate based on comps in the area, Flip Finder has you covered.

70% Rule

The 70% rule is a safe guideline to use when working out the maximum purchase price of a property that you are hoping to flip. With FlipFinder there is a built-in  70% filter, which quickly calculates a suitable price to offer, based on the listing price.

Renovation Cost Estimator

Even though every house has its own unique set of challenges, there are ways to estimate the rehab costs. With Flip Finder, you can access a quick approximation of how much rehab will be needed to increase the value of the property.

Potential Return on Investment (ROI)

The underlying goal of any fix and flip is to maximize the profit that you make in the deal. With Flip Finder you can quickly assess the potential ROI, based on the offer price, rehab costs and ARV.

Other Ways To Find Properties To Flip In Joliet

1. Leverage The Power of Wholesalers

The whole point of wholesalers is to connect motivated sellers with interested buyers. Although there is a fee involved, the value that a wholesaler can deliver often far outweighs their fee. By choosing this route, you can access to the wholesalers full library of properties, and their knowledge of which properties are selling below market value.

2. Attend Bank Auctions

When houses enter into foreclosure, they are often sold via bank auctions for less than they are worth. As an aspiring property investor, attending physical auctions and even online auctions can help you find deals that never make it to the open market.

3. Use Direct Mail To Find Off-Market Properties

You might think this is an old school tactic that no longer works with in this day and age. The truth is, you can still find deals using direct mail. The key to this method is to create a compelling outreach letter, and to be patient. A percentage of the people that you contact will respond and some of them will be favorable to a discussion about selling their property.

4. Sign Up To The Multiple Listing Service (MLS)

Even though MLS listings can be competitive, it is still a good avenue for finding properties to flip. The MLS is literally a database created by real estate agents, and it is filled with property details and statistics that can help aid your research process. There is a fee involved, but one deal is all you need to comfortably cover the costs.

Apply for a loan with New Silver today!