I was going through a recent report released by PwC and Urban Land Institute that ranks Charlotte fourth among the top 20 real estate markets in the U.S. in 2020. As a long-time investor here, I find it interesting to watch how the robust job market in the city has supported the growth of residential real estate. Though Charlotte is more expensive to live in than other areas in North Carolina, the prices of homes here are way less than those in Washington D.C. or New York City, for example. To me, this trend of ever-increasing housing demand from potential buyers serves as an ideal investment opportunity for flipping houses in Charlotte, NC. And, that is partly why I’ve been doing so for the past twenty years and recommending the same to new investors.
Thanks to many popular TV shows, new investors often view house-flipping as a way to invest in real estate but not have to hold on to the investment. They tend to focus on the idea of making fast money instead of understanding the good business practices for flipping houses.
If you are a new real estate investor who’s considering flipping houses in Charlotte NC, there’s plenty of opportunity for sure. But, there are a few things to consider before you open your wallet for that first deal. Let me walk you through the basics of what you need to know.
Opportunities in the Charlotte, NC House Flipping Market
With the rapid growth of technology and manufacturing sectors here in Charlotte—in addition to its already established banking sector—there have been increased investments over infrastructure including airport expansion and the extension of Blue Line Light Rail. This influx of businesses has created a favorable job market, which, in turn, has led people to move into the city. With a median home price of around $260,000, Charlotte is an affordable choice for potential homebuyers. For us, the real estate investors, this means we have plenty of takers for flipped houses to be sold with higher upside potential.
The catch is to find those distressed homes that need to be flipped. With the coronavirus pandemic impacting the city’s job market, there has been an increase in homeowners struggling to pay the mortgage due to layoffs and furloughs. As a result, foreclosure actions on housing units have been on the rise across the entire Mecklenburg County, with a majority of distressed homeowners facing pre-foreclosure notices. As a real estate investor, you can help such homeowners get out of a financially difficult situation by offering them the best quote that saves them from the embarrassment of seeing their houses go back to the bank while leaving you with enough upside potential to flip and sell those properties.
When it comes to flipping houses here in the Queen City, you need to keep a close eye on the neighborhoods where you can fetch the right prices for the flipped properties. Depending on affordable housing prices as well as the distance from downtown Charlotte—the commercial hub, some of the upcoming neighborhoods in the city include Plaza Midwood, Echo Hills, Belmont, Elizabeth, Myers Park, and NoDa. Though it is an ideal opportunity for you to invest in distressed houses in these up and coming neighborhoods, you need the right marketing tools and resources before taking the plunge.
What You Need to Start Flipping Houses in Charlotte, NC
Before you rush ahead to start negotiating with a distressed homeowner, it is important to evaluate your investment prospect in terms of the current economic climate; housing prices in the neighborhood; the cost of renovation; and the upside potential of the property. As someone new to the real estate market, there are high chances that you would commit some rookie mistakes that can turn your deal into a messy affair. This is the reason you need comprehensive training and the right resources to make wise real estate investments while flipping houses in Charlotte, NC.
Without initial training on real estate investment, you are practically clueless while estimating the price of flipping a house in Charlotte that realizes potential returns. Also, you likely won’t be able to negotiate with distressed homeowners confidently to align your investment goals with their needs.
With delinquent and default mortgages on the rise, you can keep track of foreclosure notices in Charlotte published in The Mecklenburg Times or The Charlotte Observer. There are also websites that list notices for houses to be auctioned. However, there is usually a bidding war at these auctions, and the chances of you winning the bid are really slim. Also, you can’t inspect the property before the auction—this makes it tricky to estimate the after repair value of the property. You can’t rely on such lead generation methods for flipping houses in Charlotte.
Real estate investing tools:
So, you have come across a house that, you think, is the right one for flipping. But have you estimated how much time and money you would need to fix the house before selling it? Does the expensive repair work justify the upside potential of the property? How quickly can you get the rehab work done for buyers who want to move fast? Without tools, you are likely to end up with a project needing extensive rehab work and paying costs for holding the property for too long. No new investor needs that!
Your lack of experience in flipping houses and eagerness to make big and fast profits can land you into deep financial trouble. This is why you need guidance and pro-tips from seasoned investors to make informed investment decisions while flipping houses in the city.
Flipping houses in Charlotte, NC is not as easy as TV makes it out to be but with comprehensive training on real estate investing, the right tools, and the much-needed support, you can master it. But how do you obtain these tools? Here is how I equipped myself when I started as a real estate investor here in the city back in early 2000.
Flipping Houses in Charlotte NC: The Right Way
When I joined the network of independently owned and operated Homevestors® franchisees, I was new to real estate investing and needed comprehensive training and education to learn the ropes of the business. The weeklong initial training provided by HomeVestors® helped me understand the best exit strategies while flipping houses in Charlotte NC.
Our nationally-known and trusted “We Buy Ugly Houses®” campaign connects HomeVestor® franchisees with distressed homeowners through billboard ads, television commercials, radio, and direct mailers. When such homeowners decide to get out of a difficult financial situation, they call me—their local HomeVestors franchisee—directly to get help with the sale of their properties.
As a part of the franchisee network, I get access to the proprietary tech tools that add value to my business. An intuitive proprietary lead pipeline management software takes me through each step of the sales process. With the help of DealVestorsTM, a streamlined listing portal, I can wholesale the flipped properties to real estate investors across the nation. A sophisticated lending portal connects me to some of the most reputable hard money lenders to finance my deals.
In addition to all of these, my personal real estate investing mentor helped me set realistic investment goals and supported me in achieving them. These Development Agents (DA) are generally seasoned HomeVestors® franchisees who help new franchisees learn the end-to-end process of buying, rehabbing, and selling a house.
Looking back now, I feel that the training, resources, and support played a crucial role in establishing my career as a real estate investor in the city. If you, too, want to flip houses in Charlotte NC—the right way—request information about becoming a franchisee today.
Each franchise office is independently owned and operated.