The Short Answer
House flipping companies are businesses that do all or part of the house flipping process for real estate investors. Typically, they consist of an experienced team who can find properties, renovate them and sell them. Or at least part of this process. For buyers and sellers both, house flipping companies have many benefits that include time and energy saving, networking opportunities, lower risk, faster profits and potentially property management.
Finding house flipping companies near you requires looking at reviews, considering whether they align with your goals, making sure that they are licensed and experienced, and that they are transparent with their information.
Table of Contents
What Is A House Flipping Company?
House flipping is a successful real estate investing strategy that involves buying a distressed or undervalued property, making improvements or repairs to increase the value, and then selling it at a higher price, usually within a short period.
House flipping companies typically aim to identify properties that have the potential for significant appreciation after renovations, such as distressed or foreclosed houses, outdated properties, or those in need of repair. By purchasing properties below market value, making strategic renovations or upgrades, and selling at a higher price, house flipping companies seek to generate profits from the resale of these properties.
House flipping companies typically have a team of professionals, including real estate investors, contractors, designers, and project managers. The team will work together to identify potential investment properties, estimate renovation costs, oversee the remodeling process, handle the subsequent sale of the property and sometimes even the property management. Which ultimately determines the success of the business.
Types Of House Flipping Companies
There are various types of house flipping companies, each has a different approach to reach their goals and the goals of buyers and sellers. Here are some of the most common types, and house flipping companies may fall into more than one of these categories:
Full-Service House Flippers
These companies will handle the house flipping process from beginning to end. Essentially, full-service house flipping companies will take care of everything from finding the investment properties, purchasing them, rehabbing the home, and selling the home thereafter. These house flipping companies will have a solid team in place, which includes real estate professionals, contractors, project managers and more. They may even take care of the property management in some cases.
Wholesale House Flippers
Wholesale house flipping companies are more like middlemen, as they don’t purchase the properties that they find and there is no property management. Instead, once they have found properties that have great potential for flipping, they will sell them to investors for a fee. Wholesale house flippers will typically have a network of real estate investors who are looking for properties to purchase at lower prices, and then renovate and repair them, in order to sell them for a profit. So, using a wholesale house flipping company can speed up the process of finding the right real estate deal.
Virtual House Flippers
Virtual house flipping companies operate fully remotely. They use technology and online platforms to identify properties, manage renovations, and sell houses. They may work with local teams on the ground to handle the physical aspects of the flipping process. However, these teams will be trustworthy and reliable. In other words, a virtual house flipping company can do an entire house flip remotely, and simply use their local team for the physical tasks.
Partnership House Flippers
A partnership house flipping company is one that will form a partnership or joint venture with a real estate investor. The investors provide the capital for the purchase and renovations of the properties, and the house flipping companies will do the rest. A partnership house flipping company will find the properties, do the renovations and then sell them once the project is complete. This allows investors who have limited house flipping experience the chance to invest in real estate projects.
Luxury House Flippers
Luxury house flipping companies will specialize in luxury or high-end properties. They will source higher end properties to purchase, use expensive materials and finishes, to make sure that the end result is a luxury property that will appeal to affluent buyers. These house flipping companies will focus specifically on luxury properties in the higher end bracket of the real estate market.
Green House Flippers
Green house flipping companies are aimed at sustainable and eco-friendly renovations to properties. These companies will find properties to flip, with the goal of making environmentally friendly upgrades, which include energy-efficient features and green building practices. Green house flipping companies are specifically aimed at those who are conscious of sustainability and looking to minimize their carbon footprint while investing in the real estate world.
What Are The Benefits of Using A House Flipping Company?
House flipping companies can provide a variety of benefits to real estate investors, however it’s important to research the company well, and choose a reputable company with an easily accessible track record. The main benefits of a house flipping company include:
Extensive Experience
House flipping companies have a staff contingent who are well versed in house flipping, which can be helpful for investors who have limited experience in these projects. These companies will have project managers and contractors on hand who are seasoned professionals and have executed many successful renovations for house flips. This experience is invaluable for investors who can gain from their understanding of the local real estate markets, renovation costs, property management and the overall process.
Saves Time and Energy
House flipping requires spending time, and a significant amount of effort on the project, and house flipping companies can help investors to save both time and energy by taking on tasks. House flipping companies can find the right property, oversee the renovations and manage the home sale process. In some cases, even the property management is taken care of. Which saves investors both the time and effort of having to do all of these tasks, potentially with very little experience.
Network Opportunities
House flipping companies usually have extensive networks which they can use to find good real estate deals that are likely to be profitable. Sometimes they can get access to off-market properties, foreclosures and other distressed properties that may not be listed for the public yet. Which means that investors can get early access to good deals, and potentially save time and money.
Lower Risk
Due to the reliable teams used by house flipping companies, and their expertise in the house flipping arena, the risk for investors is much lower than doing it themselves. House flipping companies are generally experienced in managing the risks involved with house flips, which means that they will have contingency plans for problems that may arise. They will also make sure that thorough due diligence is conducted on properties and assess potential problems early on.
Faster Profits
House flipping companies often make their profit from each house flip’s success, which means that it’s in their best interests to finish projects quickly. As such, investors can make their profits quicker, as the house flips happen in a shorter period. House flipping companies also have streamlined processes and reliable teams that shorten the project timelines.
List Of Well-Known House Flipping Companies
There are a wide array of house flipping companies available for both buyers and sellers, however here are 4 of the most well-known companies that offer various services around house flipping.
- HomeVestors: Known for their slogan “We Buy Ugly Houses”, HomeVestors is a franchise network of companies in the US that focus on purchasing homes in dire need of renovation. The company provides training and support for franchisees on finding a property and renovating it, in order to resell these properties for a profit and conclude a house flip.
- CT Homes: This house flipping company helps investors buy and sell homes. CT Homes work hand in hand with real estate agents to find properties that fit the criteria, and transform each of the properties into great, livable homes. The goal is to provide San Diego home sellers with strong cash offers from buyers, flexible escrow periods and seamless transactions.
- REI/kit: This business provides wholesaling software that enables a real estate investor to flip houses by finding motivated sellers. The software not only helps investors to find a good real estate deal, but it also expertly analyzes the deals with the latest technology to ensure that they will be profitable.
- AssetColumn: This business is a marketplace where investors can find wholesale, fix and flip, FSBO and owner financed houses. It allows investors and buyers to easily find a real estate deal, connect with property owners, and post real estate deals if they wish to sell a house. For house flippers, finding a property via a marketplace like AssetColumn can take out a lot of extra legwork.
How To Choose The Right House Flipping Company Near You
If you’re asking yourself, “how do I choose house flipping companies near me?”, we’ve got the answer. We suggest considering the following factors when you’re researching house flipping companies in today’s real estate market:
- Reviews: One of the easiest ways to find out whether a business is reliable and successful at house flipping, is to look at the reviews and testimonials. These will indicate the overall sentiment around the business and show their reliability and expertise. Just because you’ve heard of a house flipping company nearby, doesn’t mean they are the right company for you, so this is an important step.
- Experience: It’s important to look at the level of experience that the company has, in order to gauge how successful they have been, and can be. Consider how long they have been in business for, and how many house flipping projects they have managed or been part of. Also, check out how many of these projects were profitable and successful.
- Licensed: Check whether a house flipping company is accredited with a professional body in the area. This is a good indication as to whether they abide by certain business standards in the industry and are regulated in some way or not. Each state has its own licensing and accreditation rules, so this will vary across the country.
- Transparency: A house flipping company should be open and honest about their processes, fees, timelines and the risks involved. Any company that isn’t open and responsive to these questions is a red flag.
- Goals align: An important consideration to remember is that your goals need to align with the business you choose. You’ll need to trust them with your capital and the entire project, potentially, so you’ll need to be comfortable dealing with them, with the knowledge that they understand your goals and are aligned with these. Your expectations and concerns should be addressed by the business in an honest and clear way.
Remember to take your time, ask questions, and weigh your options before making a final decision on which business you will begin flipping houses with.