If you follow television shows, then you likely believe that all flippers are somewhere between half-crazed crooks and rural, down-home, country values type folk, but that isn’t the case at all. In fact, anyone can be a flipper, provided they have the motivation to do so.
How to Make a Difference in Your Local Community Through Flipping
We’ve all seen them; whether it’s the bowling alley that went out of business last year, a couple of homes that don’t quite seem to live up to the quality of the surrounding neighborhood, or even entire areas of the town that look like they’re due for a renaissance, there are plenty of opportunities for a flipper to make a real difference. While the flipping television shows may make it out to look like flippers are in it for only profits or helping friends and relatives, what they really do is bring new business and living opportunities to communities in need.
Transforming Vision Into Opportunity
The largest difference between a flipper and the general public is their vision; where others sigh with disdain, a flipper sees an opportunity to build something great. After all, no flipper can make a living without being able to envision what it is that people that area want, but currently do not have.
The flipper takes this vision of what could be and what they believe that people will be interested in buying, then convert that vision into an opportunity for a family to live within, a business to grow from, and a community to find a cherished new addition; anything short of that level of desirability isn’t going to validate the flipper’s time and energy sunk into a project. So, if you’re wondering what it takes to be a great flipper, then consider placing the conversion from vision to opportunity at the top of the list, right next to an iron will that never lets you give up.
Thinking of the End User
As a flipper, you aren’t just taking something old or in disrepair and making it something camera-ready, as if straight out of magazine; instead, you’re simply trying to strike the perfect balance of vision and cost to resonate most with your end user. Throughout every project, it is crucial that any great flipper keep their end user in mind. In fact, some flippers even go so far as to give imaginary names and faces to their ideal end user, nailing down specifically what they would and would not like, settle for, and splurge for, because, at the end of the sale, that’s exactly what will have to happen.
If you sink an extra 10,000 dollars into a high-end flooring material that will go throughout the entire flip, how likely are your end users going to care 10,000 dollars, or more, for this nifty feature? If the answer is not enough, then you shouldn’t add the flooring, regardless of how great it would look or how happy it will make you. Herein lies the lesson for all new flippers: You aren’t making this house for you, but for the end user that will buy it from you; think of what they want, not what you want.
There is a butterfly effect that occurs when a house is fixed up and sold at a high value, a business comes back that was once gone, or a community center is born from the ashes of abandonment; in light of these community-based improvements, opportunities are born for improving the value and quality-of-life for that community for many years to come. As a flipper, when you take up and complete a project, you are bringing long-term value that can influence and spread throughout that community like wildfire. This principle is heightened if you remain in the same area, giving back more in hope and opportunity than you could ever take out in profit at the end of each sale – which is sizeable in itself.
Importance of Rehab Loans
We, at Private Lending Group, are happy to fit into this formula of taking something that is currently underserving the community and reimagining it with an entirely new purpose. Thanks to rehab loans, such as those we supply to Chicago-area flippers, new life is given to properties that are currently acting as a burden to the surrounding area. Whether we’re helping someone restore a small business, prepare an apartment building for a dozen families, or just fix up the worst house on the block, we see the rehab loan process as invaluable to those end users. As we see it, the only barrier to your success as a flipper should be your ability to convert your vision for an area into opportunities for its residents – not the amount of capital you have on hand.