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

Flipping houses presents a unique avenue for building wealth and achieving financial independence while enjoying a flexible schedule. Aspiring real estate investors keen to explore this exciting venture might find Nebraska an ideal starting point. With its low unemployment rate, robust demand for housing, and affordability, Nebraska sets the stage for an investor-friendly environment. These factors converge to create a marketplace that offers ample opportunities for those interested in house flipping.

In this article, we will explore how to flip houses in Nebraska. From understanding the fundamental steps to navigating the intricacies of the real estate market in the state, we provide valuable insights to equip new investors with everything they need to embark on a successful house-flipping journey in Nebraska, including:

• What Is Flipping Houses?
• Nebraska House-Flipping Statistics
• How To Flip Houses In Nebraska (7 Steps)
• How To Find Houses To Flip In Nebraska
• Do You Need A License To Flip Houses In Nebraska?
• How To Flip A House In Nebraska With No Money
• Best Cities To Flip Houses In Nebraska
• Final Thoughts On Flipping Homes In Nebraska

*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 Nebraska! 

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, commonly referred to as rehabbing, is a standard real estate investment strategy involving the purchase of distressed properties, their renovation or rehabilitation, and their subsequent sale at a profit. This strategy entails a series of well-defined steps investors follow to turn a rundown property into an appealing and marketable home.

The process begins with locating a property needing repair, often acquired at a discounted price due to its condition. Once acquired, the property undergoes a thorough renovation, which includes repairs, upgrades, and improvements aimed at increasing its overall value and appeal to potential buyers. The goal is to make the property more attractive while addressing structural or aesthetic deficiencies.

After the rehabilitation, the investor strategically prices the property, aiming to sell it higher than the combined costs of acquisition, renovation, and other associated expenses. The key to profitability lies in meticulous budgeting, wise investment in renovations that add value, and careful market analysis to determine the optimal selling price.

By adhering to these fundamental steps and achieving a successful flip, investors capitalize on the difference between the purchase price, renovation costs, and the final sale price. This margin constitutes their profit and rewards their efforts in restoring the property, providing them with a significant financial return on their investment.

Nebraska House-Flipping Statistics

Prospective investors seeking to learn how to flip houses in Nebraska should arm themselves with the best housing statistics and data. Understanding key indicators such as median home prices and property appreciation rates can help them make informed decisions.

By analyzing these fundamental figures, investors can gain insights into the local market dynamics and make strategic choices that align with their flipping goals and aspirations:

• Average Home Prices: $254,149
• 1-Year Appreciation Rate: +4.0%
• Median Days To Pending: 6
• Median Days On Market: 13
• Active Listings: 4,753
• New Listings: 2,019
• Months Of Supply: 2
• Foreclosure Rate: One in every 8,325 homes
• Population: 1,967,923
• Median Household Income: $66,644
• Unemployment Rate: 0%

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

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How To Flip Houses In Nebraska (7 Steps)

Flipping in Nebraska involves a series of strategic steps that can lead to profitable outcomes. These seven essential stages provide a roadmap for investors to navigate the process and maximize their success. From sourcing potential deals and securing financing to rehabbing properties and ultimately selling them, these steps serve as a comprehensive guide for new and experienced flippers alike:

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

1. Find A House-Flipping Mentor

A house-flipping mentor is an experienced and knowledgeable individual who guides and supports new investors through the intricacies of the real estate flipping process. For those venturing into property flipping in Nebraska, seeking a real estate mentor can offer invaluable insights and guidance. Working with a mentor provides new investors with a wealth of real-world knowledge, allowing them to learn from the mentor's successes and mistakes.

The benefits of having a mentor extend beyond receiving an education. Mentors can offer personalized advice, connect investors with valuable industry contacts, and provide a fresh perspective on an entire industry. They can also offer emotional support during the challenging phases of the flipping journey.

To find a mentor, investors can tap into local real estate investment groups, attend networking events, or explore online platforms and forums where experienced flippers share their expertise.

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

2. Research The Local Housing Market

For those who want to learn how to flip houses in Nebraska, several reliable resources are available to reference the state of the market. These resources offer valuable insights into market trends, property values, and investment opportunities. Here's a compilation of some of the best resources that investors can refer to for accurate and up-to-date information:

• Zillow Housing Data Research
• Zillow’s Nebraska Market Overview
• Redfin’s Nebraska Housing Market Data
• Realtor.com’s Nebraska Market Overview
• Realtor.com’s Residential Data Library
• Nebraska Realtors Association
• ATTOM Data Solutions’ Nebraska Real Estate & Property Data
• SoFi’s State Foreclosure Data
• U.S. Census Bureau’s Nebraska Data
• Bureau Of Labor Statistics’ Nebraska Economic Data
• Nebraska Real Estate Commission
• Federal Reserve Bank of St. Louis’ Nebraska Data

3. Find & Analyze Distressed Properties

Securing distressed properties below their actual market value is a cornerstone of successful house flipping in Nebraska. This strategic approach, often guided by the "70% rule", enables investors to maximize profit margins and mitigate potential risks. The concept revolves around purchasing properties at a price lower than their estimated after-repair value (ARV).

By adhering to the "70% rule," investors calculate their maximum allowable offer (MAO) by multiplying the ARV by 70% and subtracting the estimated repair costs. This formula ensures that the purchase price, including renovation expenses, remains below the anticipated selling price. Investing in properties below market value boosts potential profits and creates a safety net against unexpected costs or market fluctuations.

Here is the formula:

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

In the context of flipping houses in Nebraska, where factors like affordable housing and strong demand play a pivotal role, finding deals below market value becomes paramount. This practice enables investors to secure properties at competitive prices, undertake necessary renovations, and sell for a higher price, enhancing profitability and increasing the likelihood of a successful flip.

Read Also: Free ARV Calculator: After Repair Value Calculation

4. Raise Capital To Fund The Deal

House flippers in Nebraska often rely on alternative financing sources like hard money lenders and private money lenders to fund their projects. These lenders provide essential capital that allows investors to acquire properties, undertake renovations, and ultimately generate profits. Hard money loans and private money loans play a crucial role in the success of house-flipping ventures due to their flexibility and speed of funding.

Hard money lenders typically evaluate the property's potential value and the investor's experience rather than focusing solely on their creditworthiness; this is particularly advantageous for new flippers who might not have an extensive credit history. These lenders prioritize the property's potential and the investor's exit strategy, making the approval process quicker and more accessible.

Private money lenders, on the other hand, are individuals or groups who invest their funds in real estate projects. They often build relationships with investors based on trust and can offer more favorable terms than traditional lenders. House flippers can negotiate interest rates and repayment schedules that align with their investment goals.

In Nebraska's real estate market, where opportunities abound, and the demand for housing remains steady, working with hard money lenders and private money lenders is crucial. Their willingness to fund projects based on property potential and investor experience empowers flippers to seize profitable opportunities and execute successful flips.

Read Also: Free Hard Money Loan Calculator: Quick & Accurate Results

5. Close On The House

Understanding how to flip houses in Nebraska isn’t complete without comprehending the closing process. From the purchase and sale agreement to the final recordation, these essential steps pave the way for closing on a real estate deal:

• Offer Acceptance: A purchase agreement is formed once the seller accepts the investor's offer.
• Escrow Opening: In Nebraska, an escrow account stores funds and documents.
• Due Diligence: The investor conducts inspections, verifies property details, and reviews the seller's disclosures.
• Title Search: A title company examines the property's title history to ensure clear ownership.
• Contingencies: Any agreed-upon contingencies are addressed, such as repairs or adjustments to the purchase price.
• Appraisal: The property's value is appraised to determine its fair market value.
• Closing Disclosure: The Closing Disclosure document is provided to the investor, outlining the terms and costs of the transaction.
• Final Walk-Through: The investor inspects the property one last time to ensure its condition is as expected.
• Signing Documents: At the closing, both parties sign the necessary documents, including the deed and mortgage.
• Funds Transfer: The investor provides the necessary funds into the escrow account.
• Title Transfer: The title is transferred to the investor, and ownership is officially recorded.
• Loan Funding: If applicable, the investor's loan funds are disbursed to the seller.
• Closing Costs: The investor pays any remaining closing costs, including taxes, fees, and insurance.
• Escrow Closing: The escrow agent ensures all funds and documents are in order before officially closing.

As an escrow state, Nebraska’s closing process involves a neutral third party, usually a title or escrow company, that handles the closing process, holding funds and documents until all conditions are met; this provides security and ensures a smooth transaction for both the investor and the seller, as the escrow agent ensures that all necessary steps are completed before releasing the funds and transferring ownership.

6. Renovate The Property

Initiating renovations is vital for flipping success in Nebraska. Investors should strategically plan renovations that enhance the property's value, focusing on essential updates that resonate with potential buyers. Investors can maximize the property's appeal and potential profitability by ensuring that renovations are well-executed and aligned with market preferences.

According to Remodeling Magazine, the renovations that return the most money to investors in Nebraska (and the rest of the West/North/Central region of the United States) are:

• Electric HVAC Conversion: Recoups 93.7% of the original cost
• Vinyl Siding Replacement: Recoups 90.1% of the original cost
• Manufactured Stone Veneer: Recoups 89.8% of the original cost
• Minor Midrange Kitchen Remodel: Recoups 83.5% of the original cost
• Garage Door Replacement: Recoups 77.9% of the original cost

7. Resell The House

After renovating a house in Nebraska, the investor's next step is to sell it efficiently and profitably. To achieve this, investors can work with real estate agents who understand the local market and have a network of potential buyers. By staging the property effectively and showcasing its upgraded features, investors can create a compelling presentation that attracts buyers.

Pricing the house competitively while considering recent sales in the area can further accelerate the selling process. Effective marketing strategies, such as online listings and open houses, can increase visibility and generate interest. By leveraging these tactics, investors can optimize their chances of selling the renovated home quickly and maximizing their return on investment.

How To Find Houses To Flip In Nebraska

As aspiring house flippers learn the ropes of real estate in Nebraska, they must establish an effective strategy to unearth potential deals. Fortunately, various tried-and-true techniques are available to help patient investors locate both on-market and off-market opportunities. Here's a rundown of some of the top methods that modern investors employ to discover houses ready for flipping in Nebraska:

• MLS Listings: Scout the Multiple Listing Service (MLS) for properties that have lingered on the market, often indicating motivated sellers seeking offers.
• Foreclosure Auctions: Participate in foreclosure auctions to secure distressed properties at competitive prices.
• Wholesalers: Partner with seasoned wholesalers specializing in identifying distressed properties, offering access to pre-vetted leads.
• Direct Mail Campaigns: Execute targeted direct mail campaigns that address financially distressed homeowners, offering solutions to those unaware of their options.
• Online Real Estate Platforms: Utilize today’s most popular online platforms to explore listings and market trends, pinpointing potential investment properties.
• Networking Events: Network at local events hosting like-minded industry professionals like Realtors, real estate agents, and other investors.
• Drive For Dollars: Drive around neighborhoods to locate vacant or rundown homes, which may suggest the owner is more inclined to sell.
• Bandit Signs: Place "We Buy Houses" signs in areas where the law permits to attract buyers and sellers.
• Real Estate Agents: Creating and growing relationships with real estate agents and Realtors will give investors insider access to both on- and off-market deals.
• Probate Listings: Explore probate listings to uncover heirs in possession of homes who would rather sell than hold on to their inheritance.
• Social Media: Leverage today’s largest social media platforms to reveal buying and selling opportunities.
• Online Auctions: Participate in virtual property auctions, accessing potential flips and investment options through remote bidding.
• Property Tax Delinquencies: Research public records for properties facing tax delinquencies or liens, often indicating motivated sellers seeking resolution.
• Local Newspapers: Scan local newspapers for properties directly listed by owners, offering potential off-market prospects.
• Networking Groups: Join local real estate investment groups to connect with like-minded professionals and property owners interested in selling.
• Property Managers: Build relationships with property management companies to gain insights into owners contemplating the sale of their rental properties.

Do You Need A License To Flip Houses In Nebraska?

Flipping homes in Nebraska doesn't require a real estate license for investors. Engaging in buying, rehabbing, and selling properties for profit falls within the scope of real estate investment activities.

A real estate license is generally required for professionals engaged in traditional real estate transactions, such as representing buyers and sellers in property sales.

Read Also: How To Get MLS Access: 6 Strategies For Real Estate Investors

How To Flip A House In Nebraska With No Money?

Flipping houses often demands substantial upfront investment, which can be challenging for many investors. In such scenarios, tapping into alternative financing becomes crucial. Instead of relying solely on personal funds, investors frequently seek assistance from hard money lenders or private money lenders.

While money is required to acquire and renovate a property, it doesn't necessarily have to be the investor's capital. Borrowing from these lenders allows investors to secure the necessary funds for purchase and rehabilitation, enabling them to seize profitable opportunities that might otherwise be out of reach. This approach minimizes the need for substantial upfront cash investment and allows investors to embark on their house-flipping journey with limited personal funds.

Best Cities To Flip Houses In Nebraska

Some of the best cities to learn how to flip houses in Nebraska include, but are not limited to:

• Omaha: New home flippers should consider investing in Omaha, Nebraska due to its robust market appeal to first-time home buyers and steady demand. The city's relatively affordable home values create an attractive entry point for investors looking to capitalize on the growing demand from this segment of buyers.
• Lincoln: Home flippers should target Lincoln, Nebraska, as it offers the potential for reasonable rehab costs and the opportunity for short-term returns. Additionally, the city's real estate market provides avenues for wholesaling, allowing investors to maximize profits through strategic deals and quick turnovers.
• Bellevue: Home flippers should consider Bellevue, Nebraska, due to its conducive environment for a successful flipping business. With a notable presence of "for sale by owner" (FSBO) properties and a real estate market that supports full-time investors, Bellevue presents an attractive opportunity for those looking to establish a profitable flipping venture.
• Grand Island: With a median home value below the state average, Grans Island has received a lot of attention for its affordability. Offering buyers an escape from relatively high prices, investors will find Grand Island has a lot of opportunities.

Final Thoughts On Flipping Homes In Nebraska

With the seven steps detailed above, aspiring investors have a solid foundation to elevate their careers in the house-flipping industry. By following these strategies, investors can navigate the process effectively, reducing risks and maximizing profits. Now equipped with the knowledge of how to flip houses in Nebraska, investors are poised for success in this dynamic market.

Are you eager to learn how to flip houses in Nebraska? 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 Nebraska. Contact us now to embark on your flipping journey with confidence and purpose.