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How To Flip Houses In Alaska

How To Flip Houses In Alaska: Step By Step (2024)

flipping houses real estate investing strategies real estate markets (states) Dec 14, 2023

Flipping houses is a venture that knows no geographical bounds, yet Alaska's rugged terrains and unique real estate dynamics offer distinct opportunities for savvy investors. In the heart of the Last Frontier, the prospect of flipping houses beckons, and there's no better time than now to seize these opportunities.

You're in the right place if you're intrigued by Alaska's real estate market. This comprehensive guide will walk you through the essential steps to flip houses in Alaska. From identifying promising properties to navigating the intricacies of the Alaskan market, we've got you covered.

Ready to learn how to flip houses in Alaska? Let's get started with the following:


*Before we begin our guide, we also invite you to view our video on How To FLIP A HOUSE For Beginners (Step-by-Step)Host and CEO of Real Estate Skills, Alex Martinez, & Stan Gendlin share how to flip a house from start to finish in Alaska! 

 

Together, Alex & Stan have completed over 1,000+ house flips. What you learn in this video will give you the confidence and guidance to successfully complete your fix-and-flip project!


What Is Flipping Houses?

House flipping, often referred to as rehabbing, is a real estate investment strategy that involves purchasing a property, typically one in need of renovations, to enhance its value and resell it for a profit. This venture has several distinct stages, making it an exciting yet intricate process for investors.

The first stage is property acquisition, where investors seek out homes in Alaska's real estate market with potential for improvement; this is followed by the renovation phase, where the property undergoes repairs and upgrades to increase its appeal and market value. Next comes the crucial step of pricing the property strategically, considering both the costs incurred during renovation and the competitive local market.

Once the property is listed, marketing efforts are pivotal in attracting potential buyers. Finally, the process culminates in selling the rehabilitated property to realize a profit. Flipping houses in Alaska, like anywhere else, demands careful planning, market awareness, and a keen eye for investment opportunities.

Read Also: Is Wholesaling Real Estate Legal In Alaska? 

Alaska House-Flipping Statistics

House Flipping Statistics In Alaska

In learning how to flip houses in Alaska, aspiring investors are advised to pay attention to the state’s most important statistics. Keep up with the data below, as it will change over time, to give yourself the best odds of flipping Alaskan real estate:

  • Average Home Prices: $350,244
  • 1-Year Appreciation Rate: +1.4%
  • Median Days To Pending: 6
  • Median Days On Market: 10
  • Active Listings: 2,285
  • New Listings: 1,018
  • Months Of Supply: 2
  • Foreclosure Rate: One in every 5,177 homes
  • Population: 733,585
  • Median Household Income: $80,287
  • Unemployment Rate: 8%

*All Alaska housing market statistics are as of Q3 2023.

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How To Flip Houses In Alaska (7 Steps)

Flipping houses in Alaska offers unique opportunities. To succeed, investors need a well-structured approach. In this comprehensive guide on flipping houses in Alaska, we'll break down the process into seven essential steps, ensuring a strategic and profitable investment journey. From property acquisition in the Last Frontier to the final sale, these steps will navigate you through Alaska's real estate market confidently and professionally:

  1. Find A House-Flipping Mentor
  2. Research The Local Housing Market
  3. Find & Analyze Distressed Properties
  4. Raise Capital To Fund The Deal
  5. Close On The House
  6. Renovate The Property
  7. Resell The House

how to flip houses in Alaska step by step

1. Find A House-Flipping Mentor

Aspiring investors should consider looking for a mentor when learning how to flip houses in Alaska. A mentor can provide invaluable guidance, insights, and support, helping newcomers navigate the unique challenges of the Alaskan real estate market.

Finding a mentor can be accomplished through various means. Networking at local real estate events, joining investor groups, or utilizing online platforms can help connect you with experienced mentors. The benefits of working with a mentor are multifaceted. They can share their wealth of knowledge, offer advice on property selection and renovation decisions, and assist in making critical connections within the industry.

Additionally, mentors can help investors avoid common pitfalls, ultimately increasing the odds of achieving success in the competitive Alaskan house-flipping market.


Ready to start house-flipping in Alaska? Join Alex Martinez at his FREE training to learn how to get started with house-flipping and wholesaling!


2. Research The Local Housing Market

In addition to learning from a mentor, any investor learning how to flip houses in Alaska should reference the state’s best resources. Here’s a list of the most trusted resources detailing the Alaska real estate market:

3. Find & Analyze Distressed Properties

Like anywhere else, investing in real estate in Alaska demands a strategic approach to maximize profits and mitigate risks. It's not just about buying any property but finding suitable properties with inherent profit margins.

Some of the most lucrative opportunities often arise from distressed homeowners or foreclosures. To assess whether a property is worth investing in, investors should employ the 70% rule, a straightforward yet practical guideline.

The 70% rule determines the property's after-repair value (ARV), estimated after renovation. Next, multiply the ARV by 70% and subtract the estimated repair costs. This calculation yields the maximum allowable offer (MAO), representing the highest amount investors should consider paying for the property to ensure a profitable flip.

Here is the formula:

ARV - Fixed Cost - Rehab Costs - Desired Profit = Maximum Allowable Offer (MAO)

Alaska house flipping mao formula

The best aspect of the 70% rule is its simplicity, making it an ideal tool for new investors looking to gauge a deal's potential quickly. It helps investors sift through potential opportunities efficiently, ensuring they make well-informed decisions and secure properties with promising profit margins in the Alaskan real estate market. That said, the 70% rule could be better and leaves a lot to be desired. If for nothing else, the 70% rule doesn’t account for everything, so investors should use it to complement a broader analysis strategy.

Read Also: Free ARV Calculator: After Repair Value Calculation

4. Raise Capital To Fund The Deal

Many aspiring real estate investors in Alaska might not have the luxury of purchasing properties outright for renovation and flipping. Fortunately, this doesn't need to be an obstacle. Opportunistic investors often turn to alternative sources of financing, such as private and hard money lenders.

Private money lenders are typically individuals or small groups willing to invest their funds in real estate deals. What sets them apart is their flexibility and personalized terms. Private lenders may be more accommodating to those with less-than-stellar credit histories or limited experience. Building relationships with private lenders can lead to quicker access to capital for future projects.

On the other hand, hard money lenders are specialized lending companies or individuals that provide short-term loans, often with higher interest rates, secured by the property itself. These lenders prioritize the property's value and profit potential over the borrower's credit score or experience.

Both private and hard money lenders offer speed and flexibility, making them invaluable resources for Alaskan investors in a competitive marketplace. They enable investors to secure financing efficiently, providing the capital needed to seize opportunities and build successful real estate careers.

Read Also: 9 Best Hard Money Lenders For Beginners & First-Time Investors

5. Close On The House

Closing on a house in an escrow state like Alaska, especially when using alternative financing like private or hard money loans, follows a structured process overseen by an escrow agent. Here are the key steps anyone who learns how to flip houses in Alaska can expect to take during the closing process:

  • Purchase Agreement: Once you've found a property and negotiated the terms with the seller, you'll sign a purchase agreement. This legally binding contract outlines the terms and conditions of the sale, including the purchase price, contingencies, and financing details.
  • Opening Escrow: An escrow account is opened with an escrow agent, a neutral third party. This account holds funds and important documents until all purchase agreement conditions are met.
  • Inspections & Contingencies: During the escrow period, you'll have the opportunity to conduct checks and address any contingencies outlined in the purchase agreement. If issues arise, negotiations may be necessary.
  • Financing Approval: If you're using alternative financing, your lender (private or hard money) will assess the property's value and your qualifications. They will provide the necessary funds to complete the purchase.
  • HUD-1 Settlement Statement: This document outlines all financial aspects of the transaction, including the closing costs and who is responsible for them. You'll review and sign this statement.
  • Closing Day: On the agreed-upon closing day, the escrow agent disburses funds from the escrow account to the appropriate parties, including the seller, real estate agents, and any outstanding debts.

Closing on a house in Alaska, particularly with alternative financing, can be complex. Still, the escrow process ensures that all parties fulfill their obligations, providing a secure and efficient way to complete real estate transactions.

6. Renovate The Property

The most lucrative renovations for house flippers in Alaska enhance a property's functionality and aesthetic appeal and promise the highest returns on investment. These renovations are crucial to attracting potential buyers and securing profitable deals, from revitalizing kitchens and bathrooms to improving curb appeal with new siding and landscaping.

According to Remodeling Magazine, the renovations that return the most money to investors in Alaska (and the rest of the South Atlantic region of the United States) are:

  • Electric HVAC Conversion: Recoups 104.8% of the original cost
  • Vinyl Siding Replacement: Recoups 98.3% of the original cost
  • Garage Door Replacement: Recoups 96.8% of the original cost
  • Steel Entry Door Replacement: Recoups 88.7% of the original cost
  • Fiber-Cement Siding Replacement: Recoups 86.9% of the original cost

7. Resell The House

When learning how to flip houses in Alaska, investors will quickly learn that selling a home is as important as buying one. Selling a converted house demands a strategic approach, and enlisting the services of a seasoned real estate agent or Realtor can be a game-changer.

These professionals bring a deep understanding of the local market, pricing trends, and the art of negotiation to the table. Their expertise often translates into selling the property faster and for a higher price than attempting a solo sale. By leveraging their knowledge, network, and marketing prowess, real estate agents can help house flippers maximize their profits and minimize time on the market, making their investment journey in Alaska all the more rewarding.

 

How To Find Houses To Flip In Alaska

Alaskan property flippers employ various strategies to uncover promising opportunities for their projects. Here's a time-tested list of effective methods that have helped Alaskan real estate investors locate their next deals:

  • Real Estate Agents & Realtors: Teaming up with seasoned local real estate agents who possess an intricate understanding of the Alaska market can unveil hidden gems, including distressed or undervalued properties.
  • Multiple Listings Service (MLS): The Multiple Listings Service remains a rich source of property listings, delivering valuable insights into motivated sellers and potential investment openings.
  • Online Listings: Leveraging well-known real estate websites grants access to comprehensive property data and tailored listings specific to various Alaskan areas.
  • Foreclosure Auctions: Vigilantly monitoring foreclosure auctions can result in distressed properties available at competitive price points.
  • Networking: Actively participating in real estate networking events and joining local investor groups facilitates connections with fellow professionals who have learned how to flip houses in Alaska.
  • Direct Mail Campaigns: Implementing targeted mail campaigns directed at property owners facing foreclosure or probate can generate leads for distressed properties across the state.
  • Bandit Signs: Adhering to local regulations, strategically positioning informative signs can attract motivated sellers keen on swift property transactions.
  • Driving for Dollars: Conducting on-the-ground surveys of neighborhoods to identify vacant or neglected properties and researching their owners can unveil potential flipping prospects.
  • Wholesalers: Establishing relationships with wholesalers who locate distressed properties can offer steady investment opportunities.
  • Online Property Auctions: Exploring various online property auctions, including tax lien auctions, can reveal investment prospects with significant growth potential.

 

 

Do You Need A License To Flip Houses In Alaska?

Aspiring real estate investors in Alaska often wonder if they need a real estate license for house flipping. Fortunately, in most cases, having a real estate license is optional for flipping houses.

This exemption is primarily because house flippers do not typically engage in activities requiring a license. Unlike real estate agents or brokers facilitating property transactions for buyers and sellers, flippers mainly purchase, renovate, and sell properties for profit. These activities fall more within the realm of property investment and development rather than traditional real estate brokerage.

 

How To Flip A House In Alaska With No Money?

Investing in real estate, particularly house flipping in Alaska, only sometimes requires investors to use their savings. Savvy investors often leverage alternative financing sources, such as private and hard money lenders, to undertake profitable ventures with minimal personal capital.

By working with private and hard money lenders, investors in Alaska can fund their house-flipping projects without tying up their finances, making real estate investment more accessible and less capital-intensive.

 

 

Best Cities To Flip Houses In Alaska

 flipping houses in Alaska best cities

Anchorage: Anchorage, Alaska, presents investors with a promising real estate landscape due to its diverse opportunities. The city offers a robust market for single-family homes, attracting first-time homebuyers and families seeking stable residential options. Additionally, multi-family investment properties and opportunities in wholesaling solidify Anchorage as an attractive hub for real estate investment diversification and growth.

Juneau: Juneau, Alaska is a promising destination for real estate investment, primarily due to its potential for off-market deals. Investors can expect relatively high rehab costs in this region, but profit margins appear worthwhile. The city's growing demand for rental properties, combined with a competitive sales price, can generate a steady cash flow and a strong return on investment for astute real estate entrepreneurs.

Fairbanks: Fairbanks, Alaska, presents a compelling opportunity for real estate investment with its relatively affordable median home values. Access to the Multiple Listing Service (MLS) allows investors to identify various properties, from owner-occupied homes to potential investment opportunities. The city's housing market offers a favorable environment for entry-level investors and those seeking long-term returns, making it an attractive destination for real estate ventures.

 

Final Thoughts On Flipping Homes In Alaska

Flipping houses in Alaska can be rewarding with the proper knowledge and strategies. By following the steps outlined above, investors increase their chances of success and establish a sturdy foundation to mitigate risks. Alaska's unique real estate landscape is brimming with opportunities, meaning now is as good of a time as any to learn how to flip houses.

Are you eager to learn how to flip houses in Alaska? Don't navigate the complexities of the real estate market alone. Reach out to Real Estate Skills today for expert guidance and support. Our experienced team will provide the knowledge and tools you need to flip houses successfully in Alaska. Contact us now to embark on your flipping journey with confidence and purpose.


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