The commercial real estate market – especially for residential properties – is seasonal. Potential homebuyers are not looking at houses during the winter, which opens up a number of opportunities for property investors. Winter is an ideal time to invest in a fix and flip project and commit to renovating the property so it can sell in the spring.
The Advantages of Fix & Flip Project in the Winter
Taking on a fix and flip project in the winter offers a number of advantages to property investors. First, the chances of getting an offer when renovations are done in spring are much better than taking on a fix and flip project in the summer and finishing things right when winter is setting in. Second, it is much easier to perform renovations while the weather is cold. No one will accidentally overheat, and you can accurately gauge how much insulation the property will need during the colder months. Third, spring gives property investors a good goal to work towards. Adhering to a schedule during fix and flip projects is important, and knowing that buyers will be looking for homes in springtime can help you budget your time better so you can make a sale once everything is completed.
Make a Fix & Hold Contingency Plan
Property markets are not static. The value of a property may fluctuate in just a few months, and the goal of property flippers is to maximize revenue from sales. However, if the property market isn’t ideal when you are done renovating your fix and flip project, you need a contingency plan. Selling a property for a lower value makes little sense, which is why many commercial real estate investors use a fix and hold contingency. If the property market takes a dip, or the property is not selling immediately, investors often put the property on the market as a rental. By renting out the newly-renovated property, investors can generate revenue until the market improves or the right buyer makes an offer. Having a fix and hold contingency creates a win-win situation for property flippers.
Financing Your Next Fix & Flip Project
If you want to invest in a fix and flip project so you can get ready to sell in spring, contact the team at Nanaki Capital. We provide a wide range of funding solutions to cover everything from property acquisitions to renovations, and even staging. We also bridge loans to fill in any gaps in capital so your fix and flip projects stay on track. Contact Nanaki Capital today and get ready to welcome the green in spring.