When the COVID-19 pandemic first reared its head in March, office workers abandoned their offices, stores and restaurants shuttered their doors, and many fix and flippers walked away from deals. Several months later, the world is still filled with uncertainty. However, one thing we know for certain is that now is a great time to get back into the fix and flip game.
Open the Door to Opportunity
At the beginning of the COVID-19 pandemic, many people lost their jobs and some still find themselves unemployed. Relief has been made available to keep many in their homes, but there has still been a vast increase in foreclosures.
For fix and flippers, this presents an opportunity to invest in homes that may be abandoned or empty at a discounted rate. If you sold your flips at the beginning of the pandemic, use that extra cash and time you have to invest in another property.
Ready, Set, Go: Starting Your Next Fix and Flip
“Where there’s adversity, there is always opportunity. Pre-pandemic debt will become distressed and those who have the means to acquire it will be able to capitalize on it,” Will Dyer, Chief Investment Officer at Bay Mountain Capital, said.
At the beginning of the COVID-19 crisis, many investors wisely sold their current fix and flip projects so they would have the cash in hand they needed when property prices began to go down. Now, according to many lenders like Dyer, that time has come.
As a flipper, what should your next steps be? Check out our shopping list here.
A Post-Pandemic Buyer’s Shopping List
The pandemic has led the way to shifts in what buyers are looking for. Getting ahead on the impending lifestyle shifts that will come as a result of the pandemic is pivotal, according to Dane Pedersen, a Commercial Underwriting Analyst at Bay Mountain Capital.
“A lot of success will be found by fulfilling demand created by new living and working conditions, and by the timely reaction to the continuing cultural shift,” said Pedersen.
Take these shifts into consideration when scouting your next flip:
- The move to the suburbs: As there is an increased focus on social distancing, more people may move to suburban areas to get more space.
- Working from home: As more organizations loosen their work from home policies or move to fully remote offices, more buyers will be seeking homes with extra space for their home offices.
- At-home entertainment: Gone are the days where people solely eat out at restaurants or seek entertainment from places like movie theatres or stadiums. Focus on finding and creating spaces with opportunities for built-in, at-home entertainment like at-home dining spaces and swimming pools.
As you drive around scouting potential properties, keep our hard money loan calculator pulled up on your phone so you can easily plug in your information and get an idea of what you can expect to qualify for from Bay Mountain Capital.
Bay Mountain Capital + You = A Dynamic Duo
Times are changing, but Bay Mountain Capital remains the same partner in your real estate success.
If you would like to learn more about how Bay Mountain Capital can help you with your residential fix and flip, reach out to us.
Do you already have a property in mind? Apply here for your fix and flip hard money loan here.
About Bay Mountain Capital:
Bay Mountain Capital has been in business for more than a decade, closing approximately 2,000 loans. We specialize in financing all types of residential and commercial property investments throughout Texas and Georgia. Using common sense and value-added approach, we strive to incorporate these principles into our underwriting and closing processes.
As a direct lender, Bay Mountain Capital can close a loan within one day after receiving a complete file and clear title. The process generally takes two weeks for a residential loan but can be accelerated where circumstances require it.
We are primarily an asset-based lender, which means that qualification requirements are limited. Our rates and fees are among the lowest in the industry.