Do you love the thrill of buying a home, fixing it, and flipping it? That’s the thrill of real estate investing. You see the potential in a home, despite its run-down condition, and know you can turn it into something beautiful. All you need is a little capital.
Hard money loans provide access to the capital and you don’t need perfect credit to do it. What you need is a keen eye for real estate. If you can pick the hottest deals out of the New Jersey market, buy them and turn them into something beautiful, you’ll have your choice of hard money lenders.
New Jersey has many areas prime for investors just like you, here are our favorite areas to fix and flip in New Jersey.
Where To Fix And Flip In New Jersey
Irvington, New Jersey – This area is hot right now. It saw an increase of 18% in home values over the last year and Zillow predicts another 1.6% increase this year.
East Orange, New Jersey – Values in East Orange increased 14.2% over the last year and Zillow predicts they’ll increase another 1.3% this year.
Paterson, New Jersey – Homes in this area increased an average of 12.1% over the last year, and according to Zillow will increase another 0.4% this year.
Gloucester City, New Jersey – With a one-year increase of 12.2% and an additional 1.3% predicted increase, Gloucester City, NJ is a great place to invest.
What To Consider Before Choosing An Area To Fix And Flip
Population Growth
Is the area growing or are people moving out of it? Watch the trends. Are people flocking to the area, which increases the demand for houses, or are more people leaving than coming? Small demand means fewer profits.
Pay close attention during ‘tougher times,’ similar to the pandemic we’re experiencing now. What do people do? Is it an area they stick around in or are they trying to get out and move to different states?
Population Growth
Is the area growing or are people moving out of it? Watch the trends. Are people flocking to the area, which increases the demand for houses, or are more people leaving than coming? Small demand means fewer profits.
Pay close attention during ‘tougher times,’ similar to the pandemic we’re experiencing now. What do people do? Is it an area they stick around in or are they trying to get out and move to different states?
Job Growth
Did new companies just invest in the area? Are jobs flourishing or have they hit a plateau? People go where jobs are, so if the area has tremendous job growth, consider it a good area to invest.
If the area’s jobs have declined, find out why. Are companies leaving the area? Are there fewer jobs available? If unemployment rates are high in an area, it won’t be a ‘hot’ area that people want to move to because people go where the jobs are located or they won’t be able to afford their housing and bills.
Neighborhoods
Look closely at the neighborhood. Is it a sought after neighborhood in the area? Do people want to live there, waiting for a house to go on the market, or is it an overlooked area that could use some love?
Look at individual features. Is it an area where most people walk or does everyone have transportation? Is it near the places most people need, like schools, grocery stores, post offices, and churches? Are there things to do that bring people to the area or is it a ghost town?
Flipping houses takes time. If home values drop, your efforts to renovate and improve a home’s value may not work. Look for an area with steadily increasing values, making your efforts worth it. If it takes you 6 months to a year to fix up a home and the area has steadily decreasing values, you may not get what you put into the home, reducing the potential of your investment.
Flipping houses in New Jersey can be a great investment if you choose the right area. Because market trends change often, watch the data. Know whether or not an area is ‘hot’. Don’t rely only on current data; look at the local history too. Looking at the historical data helps you understand an area’s trends and make it easier to figure out what an area may do in the next six to 12 months.