How To Flip Houses In Oklahoma: Step-By-Step Home Renovation Guide
Jun 12, 2024
Flipping houses is a great way to make money in real estate, even if you’re relatively new to the industry. It doesn’t require a professional background in real estate or formal education, although you must be willing to do research and put in hard work to be successful.
With a population of over 4 million people and over 1.7 million units of housing, there is ample opportunity to flip houses in Oklahoma. However, making money in real estate takes hard work and dedication. Before you flip your first house, it's important to check out the local housing market data and understand how this business works.
To help you in your pursuit, here is everything you need to know about flipping houses in Oklahoma.
- What Is Flipping Houses?
- Why Flip Houses In Oklahoma?
- Oklahoma House Flipping Statistics
- How To Flip Houses In Oklahoma In 15 Steps
- How Much Do House Flippers Make In Oklahoma?
- Is House Flipping Illegal In Oklahoma?
- Do You Need A License To Flip Houses In Oklahoma?
- How Much Does It Cost To Flip A House In Oklahoma?
- How To Flip Houses In Oklahoma With No Money
- What's The Best Place To Flip Houses In Oklahoma?
- Is It Hard To Flip Houses In Oklahoma?
- How Do You Find Contractors For Flipping Houses In Oklahoma?
- Final Thoughts On Flipping Homes In Oklahoma
Ready to take your real estate investing to the next level? Learning how to flip houses in Oklahoma is just the beginning. Schedule a FREE Strategy Session with us to learn how our Ultimate Investor Program can unlock even more opportunities and strategies in the Oklahoma market. Don't miss out—take the next step toward maximizing your investment potential today!
What Is Flipping Houses?
Flipping houses is a real estate investing strategy that involves buying a property at a discounted price, renovating it to market standards, then selling it at a higher price. Flippers buy houses being offered at a price lower than the standard market rate, usually because the homeowner is behind on the mortgage or they have deferred maintenance.
Once they purchase the home, they’ll put money into renovating the property to meet the demands of the market and sell it to homebuyers looking for a primary residence or investment property. If done correctly, they can often collect a substantial profit, even after paying for the repairs and other associated costs.
Why Flip Houses In Oklahoma?
Flipping houses in Oklahoma offers an appealing opportunity due to its relatively low property prices compared to national averages. As of mid-2024, the median home price in Oklahoma is around $210,000, significantly lower than the national median of approximately $375,000. This affordability makes it possible for flippers to purchase properties at a lower cost and potentially realize substantial profits after renovations. The lower entry cost also reduces the financial risk associated with house flipping, making it an attractive market for both novice and experienced investors.
Another reason to consider flipping houses in Oklahoma is its steady population growth, particularly in urban areas such as Oklahoma City and Tulsa. Oklahoma City, the state’s capital, has seen a consistent increase in population, driven by a diversified economy that includes sectors such as energy, aerospace, and healthcare. This population growth fuels demand for housing, which can lead to higher resale values for renovated properties. In addition, the state’s cost of living is relatively low, which further enhances the attractiveness of the housing market for potential buyers.
Oklahoma's favorable tax environment also contributes to its appeal for house flippers. The state has a relatively low property tax rate, averaging about 0.87% of a property's value, which is lower than the national average of 1.07%. This lower tax burden can increase the profitability of flipping projects by reducing ongoing costs. Additionally, Oklahoma offers various incentive programs for real estate investors, including grants and tax credits for certain types of renovations, which can further enhance the financial viability of house flipping ventures in the state.
Oklahoma House Flipping Statistics
Oklahoma is an excellent state for first-time flippers for many reasons. The median price of a home in Oklahoma was $250,800 as of March 2024, up 5.5% compared to the previous year. This means it’s relatively affordable to purchase a home compared to the rest of the US.
If you're thinking about flipping houses in Oklahoma, the recent performance of the real estate market suggests this could be a golden opportunity. In the last quarter of 2022, Oklahoma experienced a notable total appreciation of 0.75% in home prices, with an average annual rate of 3.02%. This growth is among the highest compared to the rest of the United States.
The positive trend extends to longer time frames as well. In the last five years, total appreciation was 48.46%, averaging 8.22% annually. Over the past decade, Oklahoma homes have appreciated by a total of 71.28%, with an average annual rate of 5.53%.
From the beginning of 2000 to the end of 2022, the total appreciation rate was a whopping 144.10%, with an annual average rate of 4.00%. These numbers reflect the consistent and promising growth of the Oklahoma real estate market, making it an appealing destination for house flippers.
When learning how to flip houses in Oklahoma you should prioritize recent and dependable housing indicators, not unlike those listed below (data provided by the U.S. Census Bureau, and RedFin):
- Population: 3,959,353
- Employment Rate: 57.8%
- Median Household Income: $59,673
- Median Sale Price: $250,800 (+1.9% Year-Over-Year)
- Number Of Homes Sold: 4,630 (-2.2% Year-Over-Year)
- Median Days On Market: 30 (+6 Year-Over-Year)
- Number Of Homes For Sale: 16,989 (+15.3% Year-Over-Year)
- Number Of Newly Listed Homes: 5,627 (+7.4% Year-Over-Year)
- Months Of Supply: 2 (+0 Year-Over-Year)
- Homes Sold Above List Price: 22.6% (-6.3 Points Year-Over-Year)
- Homes With Price Drops: 31.4% (+6.5 Points Year-Over-Year)
- Foreclosure Rate: 0.016% (1 Out Of 6,147)
*All Oklahoma housing market statistics are as of Q2 2024 
How To Flip Houses In Oklahoma In 15 Steps
If you want to learn how to flip houses in Oklahoma, consider the following step-by-step guide.
- Pick Your Market
- Find Your Money
- Find Three Contractors
- Find An Investor-Friendly Agent
- Find A House To Flip
- Make Discovery Calls To Listing Agents
- Analyze The Property
- Call Agents & Submit Written Offers
- Perform Due Diligence When The Offer Is Accepted
- Close On The Deal
- Renovate The House
- Prep & List The House On The MLS
- Field Offers & Negotiate
- Accept The Best Offer
- Sell The House & Get Paid
Pick Your Market
Choosing the right market is a crucial first step in flipping houses in Oklahoma, as it directly impacts your investment's potential return. Start by researching different cities and neighborhoods within the state to understand local property values, market trends, and economic conditions. Cities like Oklahoma City and Tulsa, with their growing populations and increasing property values, present promising opportunities for house flippers. Assessing these areas can help you identify where the demand for renovated homes is high and where you might achieve the best profit margins.
Next, consider factors such as neighborhood development, infrastructure improvements, and local amenities. For instance, areas undergoing revitalization or those with planned infrastructure projects often experience a rise in property values, making them ideal for flipping. Look for neighborhoods with strong schools, low crime rates, and access to amenities like parks and shopping centers. These features can significantly enhance a property's appeal to potential buyers and ensure a quicker sale at a higher price.
Finally, analyze the competition and the number of available properties in your chosen market. A market with fewer investors and a steady supply of distressed properties can provide a competitive edge. Evaluate local real estate reports and market data to gauge how many houses are being flipped and the average time on the market. By selecting a market with high demand and limited competition, you can increase your chances of a successful and profitable house flip in Oklahoma.
Find Your Money
Securing the right funding is essential for a successful house flipping venture in Oklahoma. Start by assessing how much capital you need, including the costs for purchasing the property, renovations, and other related expenses. Developing a detailed budget will help you determine the type of financing that best suits your needs. Common funding options for house flipping include personal savings, traditional bank loans, and specialized real estate investment loans. Understanding the advantages and limitations of each can help you make an informed decision and ensure you have adequate resources for your project.
When seeking financing, it's also important to evaluate the terms and conditions offered by different lenders. Interest rates, repayment schedules, and loan terms can significantly impact your overall profitability. Additionally, consider the lender’s reputation and their experience in funding house flipping projects. Partnering with the right financial institution or investor can streamline your financing process and support your project's success.
How To Find Private & Hard Money Lenders
Private and hard money lenders can be valuable resources for house flippers who need quick and flexible funding. These types of lenders offer short-term loans specifically designed for real estate investments, often with faster approval times than traditional bank loans. Finding the right lender can provide you with the capital needed to purchase and renovate properties efficiently.
Private lenders are typically individuals or companies who offer loans based on the value of the property rather than the borrower’s credit score. To find a private lender, consider networking within real estate investment groups or attending local real estate meetups in Oklahoma. Building relationships with experienced investors and real estate professionals can lead you to potential private lenders. Online platforms, such as real estate forums and investment networks, can also help connect you with individuals willing to invest in your flipping project.
Hard money lenders are specialized financial institutions that provide short-term loans secured by real estate. To find hard money lenders, use online platforms like Kiavi and Lima One, which offer lists of local and national lenders along with their contact information. These platforms make it easier to compare terms and rates from different lenders. Additionally, local real estate investment groups and associations can be valuable resources for recommendations and referrals to reputable hard money lenders.
Securing the right financing is crucial for successfully flipping houses in Oklahoma. By exploring both private and hard money lending options and utilizing online resources, you can find the financial support needed to make your house flipping venture profitable. Ensure you understand the terms of your loans and build strong relationships with your lenders to facilitate a smooth and successful project.
Find Three Contractors
Finding reliable contractors is a key component of a successful house flipping project in Oklahoma. To ensure a smooth renovation process, start by identifying three reputable contractors who have experience with similar projects. Begin by researching local contractors through online platforms, referrals from real estate professionals, and recommendations from previous clients. Look for contractors who have a proven track record of completing projects on time and within budget. Checking online reviews and verifying their licensing and insurance status will also help you make an informed choice.
It’s important to interview potential contractors to discuss your project’s scope, timelines, and budget. Ask for detailed estimates and compare them to get a sense of fair pricing. Additionally, reviewing their portfolios of past work can provide insight into their quality and style. By selecting multiple contractors, you can ensure competitive bids and choose the best fit for your renovation needs. Clear communication and written agreements will also help prevent misunderstandings and ensure that your project progresses smoothly.
How To Find A General Contractor
Finding a general contractor is a critical step in managing a house flipping project. General contractors oversee the entire renovation process, coordinating with subcontractors and ensuring that work is completed according to your specifications. To find a general contractor, start by seeking recommendations from local real estate investors or networking groups in Oklahoma. Personal referrals from trusted sources can often lead you to reliable and experienced professionals.
Another effective method is to utilize online platforms like HomeAdvisor, Thumbtack, and Angi. These platforms allow you to search for general contractors in your area, view reviews and ratings from previous clients, and request quotes. When evaluating potential candidates, look for contractors with experience in house flipping and a history of successfully managing similar projects. Ensure that they are licensed and insured, and request references to verify their reliability and workmanship. By carefully selecting a general contractor, you can streamline your renovation process and increase the likelihood of a successful house flip.
Find An Investor-Friendly Agent
Finding an investor-friendly real estate agent is crucial for a successful house-flipping venture in Oklahoma. Unlike traditional real estate agents, investor-friendly agents understand the unique needs of property investors and can provide valuable insights into market conditions, property values, and potential investment opportunities. They are skilled at identifying properties with high flipping potential and can help you navigate the buying process efficiently.
An investor-friendly agent can also assist with networking and connecting you to other professionals in the industry, such as contractors and lenders. Their expertise in negotiating deals and their knowledge of local market trends can help you secure properties at favorable prices and maximize your profit margins. Choosing the right agent can make a significant difference in the success of your flipping project, so it’s essential to find someone who aligns with your investment goals and strategies.
How To Find An Investor-Friendly Agent
To find an investor-friendly real estate agent, start by seeking recommendations from other real estate investors or flipping groups in Oklahoma. Networking within local investment communities can lead you to agents who have a proven track record of working with investors and understanding their specific needs.
You can also use online resources such as real estate investment forums and local real estate websites to find agents who specialize in investment properties. Look for agents who have experience with house flipping and can demonstrate a history of successful transactions. When interviewing potential agents, ask about their experience with investment properties, their understanding of local market trends, and their ability to provide insights into potential property values. By selecting an agent with a strong background in real estate investing, you can ensure a smoother and more profitable house flipping experience.
Find A House To Flip
Finding the right house to flip is the cornerstone of a successful house-flipping project in Oklahoma. To start your search, consider several effective methods for locating potential properties. Driving for dollars is a hands-on approach where you physically drive through neighborhoods, looking for distressed or vacant properties. This method allows you to identify homes that might not be listed on the market yet but could be prime candidates for flipping.
Direct mail campaigns are another effective strategy. By sending targeted mailers to homeowners in specific neighborhoods or those who have recently faced financial difficulties, you can generate leads on properties that may be available for sale. Crafting compelling and personalized messages can increase your response rate and help you connect with motivated sellers who are open to negotiating deals.
Utilizing the Multiple Listing Service (MLS) is also crucial. The MLS provides a comprehensive database of properties for sale, including detailed information on price, condition, and market history. Working with a real estate agent who has access to the MLS can streamline your search and help you find properties with strong flipping potential. Regularly reviewing new listings and setting up alerts for specific criteria can ensure you stay informed about the latest opportunities in the market.
Alternative Strategies to Find a House
- The Day Zero Strategy: This involves targeting properties that are newly listed or about to be listed on the market. Acting quickly on these opportunities can help you secure properties before they become widely known and potentially attract more competition.
- The Old Listing Strategy: Focus on properties that have been on the market for an extended period. These listings may have become stale, and the sellers might be more motivated to negotiate a lower price or consider creative offers.
- The Wholesaler Strategy: Collaborate with real estate wholesalers who specialize in finding distressed properties and negotiating deals. Wholesalers often have a network of potential sellers and can provide you with off-market property opportunities that are ideal for flipping.
Finding a house to flip in Oklahoma involves a combination of proactive strategies and leveraging available resources. By employing methods such as driving for dollars, running direct mail campaigns, and utilizing the MLS, you can identify promising properties for your flipping project. Additionally, exploring alternative strategies like the Day Zero Strategy, the Old Listing Strategy, and working with wholesalers can further enhance your search and increase your chances of success.
Make Discovery Calls To Listing Agents
Making discovery calls to listing agents is a crucial step in the house-flipping process in Oklahoma. These calls provide valuable insights into the properties you're interested in and help ensure you're making informed decisions. By asking the right questions, you can gather essential information that will aid in your evaluation and negotiation strategies.
- Is the listing still active?: Confirming whether the property listing is still active is crucial. This question ensures that the property has not already gone under contract with another buyer. Knowing the property is available helps you avoid wasting time on deals that are no longer viable and keeps your focus on opportunities that are accessible.
- Are the listing’s photos up to date?: It’s important to ask if the photos of the property are current. Updated photos provide a clearer understanding of the property's present condition, which is essential for assessing the extent of necessary repairs and renovations. This information helps you accurately estimate repair costs and potential profit margins.
- What is the current condition of the home?: Inquiring about the current condition of the home helps you understand whether it is distressed or in need of significant repairs. This question not only confirms the suitability of the property for flipping but also reveals potential issues that may not be immediately apparent. Such insights are crucial for evaluating repair costs and preparing for any challenges.
- Are you willing to work with an investor?: It’s useful to ask if the listing agent is open to working with investors. This can foster transparent communication and set clear expectations. Additionally, if you don't have a dedicated agent, this might be an opportunity to convince the listing agent to represent you, potentially benefiting both parties through commissions on both ends of the deal and establishing a valuable working relationship.
- What is the owner’s reason for selling?: Understanding the owner’s reason for selling can offer insights into their motivations and urgency. While this information may not always be disclosed, any details you can obtain could be advantageous in negotiations. Knowing the seller’s circumstances might give you leverage to make an offer that meets their needs while aligning with your investment strategy.
- Is there a lot of competition for the property?: Asking about the level of competition for the property helps gauge the urgency and competitiveness of the deal. If the property is receiving multiple offers or significant interest, you can adjust your strategy accordingly. This knowledge helps you avoid overpaying and positions you to make a competitive bid if necessary.
Remember, this step is for gathering information, not making deals. When ending the call, leave communications open by suggesting you'll get back to the listing agent after consulting your team and confirming whether this is a home you want to move forward with. This approach ensures a thorough and strategic evaluation process, which is vital for successfully flipping houses in Oklahoma.
Analyze The Property
Analyzing the property is a crucial step in the house-flipping process in Oklahoma. This involves evaluating key metrics to determine if the investment is viable. The primary factors to consider are the after-repair value (ARV), repair costs, and the purchase price. These elements are essential for calculating the potential profitability of the flip and making informed decisions about the investment.
After-Repair Value
Calculating the ARV, or after-repair value, is fundamental to analyzing a property. The ARV represents the estimated market value of the property once all necessary repairs and renovations have been completed. To accurately calculate the ARV, use comparable sales (comps) of recently sold properties that are similar to the one you are considering. For effective comps, ensure they meet these criteria:
- Similar number of bedrooms and bathrooms
- Within 20% of the property’s square footage
- Located in the same neighborhood or nearby
- Sold within the last six months
- Ideally, recently renovated
Average the sale prices of these comparable properties to estimate the ARV of the property you are evaluating. This estimated value will guide your investment decisions and help assess the potential profitability of your flip.
Repair Costs
Estimating repair costs is another crucial step in the property analysis process. Begin by conducting a thorough property inspection and creating a detailed list of required repairs and renovations. Obtain quotes from multiple contractors to get a realistic estimate of labor and material costs. It is also advisable to include a contingency budget for unexpected expenses, generally around 10-15% of the total repair costs. Accurate estimation of repair costs ensures that you budget appropriately and avoid unforeseen financial pitfalls, contributing to a successful flip.
Purchase Price
Determining the purchase price involves calculating your maximum allowable offer (MAO), which is the highest price you can pay for the property while ensuring profitability. To calculate this, consider the following:
- ARV: The projected value of the home after renovations.
- Repair Costs: Total estimated costs for repairs and renovations.
- Loan Costs: Include both hard money and private money loan costs, accounting for interest rates, fees, and the duration of the project.
- Closing Costs: Factor in front-end closing costs (typically 2% of the purchase price), holding costs (insurance, utilities, taxes), and backend closing costs (about 1% of the ARV).
- Realtor Fees: These typically range around 6% of the purchase price, though negotiating a lower rate can save money.
- Projected Profit: Aim for a profit margin that aligns with your investment goals. Recent reports suggest investors typically seek around 27.5% return on their rehab projects.
By subtracting all these costs from the ARV, you will arrive at the MAO, the maximum price you should pay for the property to ensure a profitable flip. This comprehensive analysis helps you make informed offers and maximize your returns on investment.
Call Agents & Submit Written Offers
The next step in flipping houses in Oklahoma is to contact the listing agent you previously spoke with to inform them of your intention to submit a written offer. Ensure that your offer is in line with the maximum allowable offer (MAO) you calculated earlier. By submitting a well-informed, written offer, you demonstrate that you are a serious buyer and increase your chances of securing the property.
When working with the listing agent or an investor-friendly agent you’ve partnered with, ensure they are aware of the terms and prepared to submit the offer on your behalf. This not only adds professionalism to your bid but also ensures that the offer is presented correctly, with all necessary documentation in place. In Oklahoma, the standard contract used is the Oklahoma Association of Realtors’ Residential Purchase Agreement.
To facilitate this process, provide the following details to your agent:
- Purchaser Name: Specify whether the purchaser is your personal name or an LLC. Using an LLC can offer added protection. If buying under an LLC, include the articles of incorporation to confirm your authorization.
- Offer Price: Clearly state the offer price based on your calculations.
- Deposit Amount (Earnest Money Deposit): Include an earnest money deposit, typically 1% to 5% of the purchase price, to show your seriousness. Note that earnest money deposits are generally refundable, but include a contingency for safety.
- Contingencies: Include a standard seven-day inspection contingency to allow for property inspections. This contingency provides an opportunity to withdraw if significant issues are discovered.
- Closing Timeline: Specify a 14-day (or sooner) closing date to expedite the process, particularly if you are using cash. This can be more appealing to sellers compared to traditional financing.
- Seller to Deliver Free & Clear Title: Ensure that the contract stipulates that the seller must provide a clear title, free from liens or other encumbrances.
- Buyer’s Agent Name: If applicable, provide the name of your agent to clarify who is representing you in the transaction.
- Proof of Funds: Include proof of funds from your lender to validate your financial capacity and strengthen your offer.
Calling agents and submitting written offers is a critical component in the house-flipping process in Oklahoma. By providing all necessary details and working closely with your agent to present a professional, comprehensive offer, you enhance your chances of securing a favorable deal. Mastering this step is key to successfully flipping houses and achieving your investment goals in Oklahoma.
Perform Due Diligence When The Offer Is Accepted
Once your offer on a property in Oklahoma is accepted, the next critical step is to perform thorough due diligence. This phase is essential for verifying that the property meets your investment criteria and that no hidden issues could jeopardize your flip project. Begin by conducting a detailed inspection of the property to uncover any potential problems that may not have been apparent initially. Pay close attention to structural components, plumbing, electrical systems, and any other elements that could impact the renovation costs and timeline.
Alongside the property inspection, it’s crucial to develop a comprehensive "scope of work" document. This document outlines all the necessary repairs, upgrades, and renovations required to bring the property to its after-repair value (ARV). Having a detailed scope of work helps you anticipate the project’s needs and ensures that all repairs and improvements are accounted for. It also assists in obtaining accurate estimates from contractors and helps avoid unexpected costs or delays during the renovation process.
Performing due diligence and finalizing the scope of work is vital for a successful house flip in Oklahoma. By thoroughly inspecting the property and meticulously planning the renovation details, you can safeguard your investment and ensure that the project progresses smoothly from purchase to sale.
Close On The Deal
Closing on the deal is the final and crucial step in the house-flipping process in Oklahoma. This phase involves completing all the necessary legal and financial procedures to officially transfer ownership of the property. Start by ensuring that all paperwork is in order, including the purchase agreement, inspection reports, and any legal documents required by the state of Oklahoma. Your real estate attorney or title company will play a key role in reviewing and finalizing these documents to ensure that everything is accurate and compliant with local regulations.
During closing, you'll need to finalize the financial aspects of the transaction. This includes providing the funds for the purchase, which may come from a combination of personal savings, a mortgage, or hard money loans. Be prepared to pay closing costs, which can include title insurance, transfer taxes, and recording fees. Make sure to review the closing disclosure statement provided by the title company, as it outlines all the costs associated with the transaction.
Successfully closing on the deal marks the official start of your renovation project. With the property now under your ownership, you can move forward with implementing your scope of work and preparing the house for resale. Ensuring a smooth and efficient closing process is vital for maintaining momentum and setting the stage for a successful house flip in Oklahoma.
Renovate The House
The next step in flipping houses in Oklahoma is to renovate the property, transforming it to meet or exceed your projected ARV (After-Repair Value) and align with the standards set by the comparable properties you analyzed. It's important to strike the right balance; while you want to enhance the property, avoid over-renovating beyond what the neighborhood's market can support. Aim to bring the house up to a level that matches or slightly surpasses similar homes, creating an appealing option for buyers while ensuring you stay within budget and maximize your profit margins.
Before beginning the renovation work, it's essential to protect yourself with several key documents that help ensure the project runs smoothly and legally. These documents include:
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Independent Contractor Agreement: This agreement defines the terms of your working relationship with the contractor, specifying payment terms, project timelines, and responsibilities. It helps to establish clear expectations and legal protections for both parties.
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Final Scope of Work: This detailed document outlines every task, material, and timeline required for the renovation. It serves as a blueprint for the project, helping to ensure the work is completed on time, within budget, and to the quality standards you expect.
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Payment Schedule: This schedule details the payment amounts and timings based on project milestones. It helps manage cash flow and keeps the contractor motivated to complete the work as planned.
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Insurance Indemnification Agreement: This document ensures that the contractor has the necessary insurance coverage and agrees to hold you harmless for any accidents or damages that occur on the property. It provides protection against potential liabilities.
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W-9: This tax form collects the contractor's taxpayer identification information, which is necessary for reporting payments to the IRS. It ensures compliance with tax regulations and helps with year-end reporting.
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Final Lien Waiver: This waiver, signed by the contractor, confirms that they have received full payment and relinquishes any future claims against the property. It protects you from additional financial claims after the renovation is complete.
With these essential documents in place, you can confidently proceed with the renovation, knowing your investment is protected and the project is set up for success. This thorough preparation will help ensure a smooth renovation process and contribute to a profitable house flip in Oklahoma.
Prep & List The House On The MLS
Once the renovation is complete, the next critical step in flipping houses in Oklahoma is to prepare and list the property on the Multiple Listing Service (MLS). This process involves several key actions to ensure the home is presented in its best light and attracts potential buyers effectively. By meticulously preparing the property and leveraging the MLS, you increase the likelihood of a successful sale at a favorable price.
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Final Punchlist: Before listing the property, complete a final punchlist to address any remaining minor repairs or touch-ups. This list includes small tasks that ensure the home is in pristine condition, such as fixing any lingering cosmetic issues, touching up paint, and ensuring all systems are functioning properly. Completing this punchlist guarantees that the property is move-in ready and presents well to prospective buyers.
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Home Staging: Home staging is a powerful tool to enhance the appeal of the property. According to the Real Estate Staging Association (RESA) via the National Association of Realtors, investing approximately 1% of the sale price into staging can yield a return on investment (ROI) of 5% to 15% over the asking price. Staging helps potential buyers envision themselves living in the space and can make the home stand out in a competitive market. This includes arranging furniture, adding decorative touches, and creating an inviting atmosphere that highlights the property’s best features.
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Professional Photos: High-quality professional photos are essential for making a strong impression online. Good photos showcase the property's strengths and attract more potential buyers. They should be taken in well-lit conditions and highlight key areas of the home, such as the kitchen, living areas, and bedrooms. Professional photos increase the likelihood of drawing interest and generating offers quickly.
Set An Enticing Asking Price
Setting the right asking price is crucial for a successful sale. The price should be competitive yet reflective of the home's market value. To determine this, consider recent sales of comparable properties (comps) in the area, the overall condition of the home, and the current real estate market trends in Oklahoma. Pricing the home correctly from the start can help attract serious buyers and potentially lead to multiple offers. It’s a delicate balance—price too high, and you risk extended time on the market; price too low, and you may leave money on the table. By setting a well-researched and enticing asking price, you position the property to sell efficiently and effectively.
Field Offers & Negotiate
Once your property is listed on the MLS, you'll start receiving offers from potential buyers. The process of fielding offers and negotiating terms is crucial to maximizing your return on investment and ensuring a smooth transaction. As offers come in, carefully evaluate each one to determine its strength and alignment with your financial goals.
Begin by reviewing each offer in detail. Look beyond the offer price and consider other key terms such as contingencies, closing timelines, and the buyer’s financial qualifications. Pay attention to the earnest money deposit as it reflects the buyer's seriousness and can be an indicator of a smoother transaction. Compare the terms of each offer to your goals for the sale and any previous offers you may have received.
Negotiation is a critical component in this stage. Use the information gathered from the offers to negotiate better terms. This could involve negotiating a higher sale price, reducing contingencies, or adjusting the closing date to suit your timeline. Effective negotiation requires clear communication and an understanding of the buyer's needs and limitations. Aim for a deal that balances your objectives with the buyer’s interests to achieve a mutually beneficial agreement.
Accept The Best Offer
After carefully evaluating and negotiating offers, the final step in the selling process is to accept the best offer for your flipped house. This decision is pivotal as it sets the stage for completing the sale and realizing your investment's return.
To determine the best offer, consider more than just the highest price. Evaluate the overall terms, including the buyer's ability to close on the property, the offer's contingencies, and the proposed closing timeline. An offer with fewer contingencies and a solid financial backing often presents a smoother path to closing, reducing the risk of deal complications.
Once you’ve chosen the best offer, communicate your acceptance to the buyer and their agent promptly. Prepare to move forward with the necessary paperwork and coordinate with your real estate agent and attorney to ensure all legal and contractual obligations are met. By accepting the best offer, you position yourself for a successful and profitable sale, completing your house-flipping venture with a positive outcome.
Sell The House & Get Paid
With the offer accepted and all negotiations completed, the final step in flipping a house is to sell the property and receive payment. This phase involves coordinating with the title company or closing attorney to ensure that all legal documents are prepared and the transaction is processed smoothly.
At the closing, you'll sign the necessary paperwork to transfer ownership to the buyer. This typically includes the deed, closing disclosure, and settlement statement. Once all documents are signed and the funds are transferred, you’ll receive your payment, minus any closing costs or fees.
Ensure all final details are handled, including transferring utilities and addressing any last-minute requests from the buyer. Completing these steps efficiently will finalize the sale and allow you to realize the profits from your investment. This marks the successful end of your house-flipping project and sets the stage for your next venture.
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How Much Do House Flippers Make In Oklahoma?
House flipping in Oklahoma offers promising returns, with average gross flipping profits reflecting the state’s favorable real estate market. As of the latest Home Flipping Report by ATTOM Data Solutions, Oklahoma's house flippers can expect significant returns, though the exact figures can vary based on specific cities and renovation choices. On average, house flippers in Oklahoma have reported gross profits of approximately $40,000 to $50,000 per transaction, making it a lucrative option for investors who carefully navigate the state's property market.
Among the top cities in Oklahoma for profitable house flipping, three stand out with the largest gross flipping profits on median-priced transactions:
- Oklahoma City, OK: With an average gross flipping profit of $52,000, Oklahoma City remains a prime location for house flippers, thanks to its robust housing demand and growing economy.
- Tulsa, OK: House flippers in Tulsa can expect an average gross profit of $48,000, driven by the city's affordable property values and steady population growth.
- Norman, OK: Norman offers a slightly lower but still attractive average gross flipping profit of $45,000, benefiting from its proximity to Oklahoma City and a strong local real estate market.
These cities provide excellent opportunities for investors looking to maximize their returns through house flipping. By leveraging Oklahoma's low property costs and understanding local market dynamics, flippers can achieve substantial profits. Key factors include acquiring properties at competitive prices, effective renovation strategies, and aligning with market demand to ensure high resale values.
Is House Flipping Illegal In Oklahoma?
House flipping is entirely legal in Oklahoma, provided that investors adhere to state and local regulations. Oklahoma does not have specific laws prohibiting house flipping, but flippers must comply with general real estate, renovation, and business regulations. This includes obtaining necessary permits for renovations, adhering to building codes, and ensuring proper documentation of all transactions. Additionally, house flippers in Oklahoma must follow federal regulations, such as those related to disclosure requirements and fair housing laws.
Investors should also be aware of Oklahoma's property tax regulations and any local ordinances that may impact house flipping. While the state offers a favorable environment for real estate investment, maintaining compliance with all legal requirements is crucial to avoid potential legal issues and ensure a smooth flipping process. Properly managing these aspects helps in maximizing profitability and minimizing risks associated with house flipping in Oklahoma.
Do You Need A License To Flip Houses In Oklahoma?
No, a license is not required to flip homes in Oklahoma unless you plan on offering brokerage services in exchange for a fee. Brokerage services include negotiating prices, fielding offers, marketing a home, and performing other tasks on behalf of another party to facilitate the sale of a property.
The Oklahoma Real Estate Commission governs the real estate industry in the Sooner State, and their Code and Rules Book has more information on what activities require licensure.
How Much Does It Cost To Flip A House In Oklahoma?
Flipping a house in Oklahoma involves several key expenses that can vary based on the property's condition and location. Understanding these costs is essential for accurately estimating potential profits and ensuring a successful flip.
The Home Purchase Price
In Oklahoma, the median home purchase price is approximately $210,000 as of mid-2024. This figure is notably lower than in many other states, providing an affordable entry point for investors. Properties in more desirable areas or with unique features can be priced higher, while distressed or foreclosed properties might be available for significantly less. It's essential to factor in this purchase price when planning your budget and determining your expected return on investment.
The Home Repair Costs
Renovation costs in Oklahoma typically range from $15 to $30 per square foot, depending on the extent of the repairs needed and the quality of materials used. For a standard three-bedroom, two-bathroom house, this translates to an average repair cost of around $20,000 to $40,000. Costs can vary based on the specific renovations required, such as updating kitchens and bathrooms, roofing, or structural repairs. It's advisable to get estimates from multiple contractors to ensure an accurate budget.
Carrying Costs
Carrying costs for a flipped property in Oklahoma include property taxes, homeowners insurance, utilities, and general upkeep. Oklahoma's property tax rate is around 0.87%, which is relatively low compared to the national average. Utilities and maintenance costs should also be budgeted for, as they can add up over time. Ensuring these ongoing expenses are accounted for will help prevent budget overruns and ensure that the project remains financially viable.
Closing, Marketing, & Sales Costs
When selling a flipped property, you will incur closing costs, which typically include real estate agent commissions (around 5-6% of the sale price), title insurance, and transfer taxes. Marketing costs may include staging the home and professional photography to attract potential buyers. Additionally, be prepared for legal fees associated with the transaction. These costs are critical to factor in as they impact your overall profit from the flip.
By carefully budgeting for these expenses and understanding the financial landscape of house flipping in Oklahoma, you can better plan your investment strategy and maximize your returns.
Read Also: How To Flip Houses With No Money: Top 10 Expert Strategies
How To Flip Houses In Oklahoma With No Money
Although it isn’t easy, it’s possible to flip houses in Oklahoma without risking any of your own money. If you find a private money lender interested in your deal, you could offer to do all the work in exchange for a split of the profits if they provide the financing.
Many hard money lenders are also willing to be flexible with income and credit requirements as long as the underlying deal makes sense and the property has value. You could also start as a real estate wholesaler and work your way up to flipping houses by saving your fees. You might also consider crowdfunding money from smaller investors online, then splitting the profits at the end of the deal.
What's The Best Place To Flip Houses In Oklahoma?
Choosing the best city to flip houses in Oklahoma involves evaluating property price trends, population growth, and local economic conditions. Here are five top cities in Oklahoma for house flipping based on current data and trends:
- Oklahoma City: As the state's capital and largest city, Oklahoma City offers substantial opportunities for house flippers. The city has experienced steady population growth, with a 1.8% increase over the past year. The median home price is around $210,000, and property values are expected to rise due to ongoing economic development and job growth. This makes Oklahoma City a prime location for finding properties with good flip potential.
- Tulsa: Tulsa is another promising market, with a median home price of approximately $195,000. The city has seen a population increase of 1.5% in the past year, contributing to a rising demand for housing. Tulsa’s relatively low property prices combined with its growing economy make it an attractive option for house flippers seeking value and profit.
- Norman: Home to the University of Oklahoma, Norman benefits from a stable demand for rental properties and an increasing population, which has grown by 1.2% recently. With a median home price of $220,000, Norman’s real estate market is competitive yet accessible, providing opportunities for profitable flips, especially near the university and other key areas.
- Edmond: Edmond, a suburb of Oklahoma City, features a median home price of $235,000 and has experienced a 2% increase in population over the past year. The city's strong schools and family-friendly environment contribute to its appealing real estate market, making it a viable option for house flippers targeting suburban properties.
- Midwest City: With a median home price of $185,000, Midwest City offers one of the more affordable entry points for house flippers in Oklahoma. The city has seen a modest population increase of 1.3% and benefits from ongoing local development projects that are likely to enhance property values. Its affordability and growth potential make it a solid choice for house flipping ventures.
Each of these cities offers unique advantages for house flippers. By carefully evaluating property values, market trends, and economic conditions, investors can identify the best opportunities for profitable flips in Oklahoma.
Read Also: 17 Best Cities To Wholesale Real Estate [UPDATED 2024]
Is It Hard To Flip Houses In Oklahoma?
Flipping houses in Oklahoma is generally considered more accessible compared to many other states due to the relatively low property prices and favorable market conditions. The median home price in Oklahoma is around $210,000, which is significantly lower than the national average. This affordability reduces the initial investment required and can make it easier to acquire properties for flipping. Additionally, the state's real estate market has shown steady growth, with cities like Oklahoma City and Tulsa experiencing moderate increases in home values, which can enhance profitability for investors.
However, while the entry barriers may be lower, challenges still exist. House flippers must navigate local regulations, which include obtaining the necessary permits for renovations and adhering to building codes. The renovation costs, typically ranging from $15 to $30 per square foot, and managing these projects effectively can be demanding. Despite these challenges, the overall market conditions and lower costs associated with house flipping in Oklahoma can offer a more manageable environment for both new and experienced investors.
How Do You Find Contractors For Flipping Houses In Oklahoma?
Finding reliable contractors is a crucial step in successfully flipping houses in Oklahoma. With the right resources, you can connect with skilled professionals who can handle everything from minor repairs to major renovations. Here are some effective platforms to consider:
- HomeAdvisor: HomeAdvisor is a popular tool for finding pre-screened contractors in Oklahoma. It offers a wide range of professionals, including general contractors, plumbers, and electricians. HomeAdvisor's system provides detailed reviews and ratings from previous clients, helping you make an informed choice based on the experiences of others in your area.
- Thumbtack: Thumbtack allows you to request quotes from local contractors and receive responses based on your specific project needs. The platform features profiles with customer reviews and service details, enabling you to compare different professionals and select those who best fit your renovation requirements.
- Angi: Formerly known as Angie's List, Angi provides a comprehensive directory of contractors in Oklahoma. It includes verified reviews and ratings, which can help you assess the quality of work and customer satisfaction. Angi also offers a range of service categories, making it easier to find specialized contractors for various aspects of your house flip.
- Houzz: Houzz is an excellent resource for finding contractors with a strong portfolio of completed projects. The platform allows you to browse through photos of past work and connect directly with professionals who specialize in home renovations and remodeling. Houzz also provides user reviews and ratings to aid in your decision-making process.
- Craigslist: While Craigslist may not be as polished as other platforms, it can be a useful resource for finding local contractors. You can post your job requirements and receive responses from contractors in your area. However, it's essential to thoroughly vet candidates through references and reviews to ensure reliability.
- Facebook : Facebook’s local community groups and marketplace are valuable tools for finding contractors in Oklahoma. Many professionals use these platforms to advertise their services, and you can also ask for recommendations from local community members. Checking reviews and engaging with the contractor’s previous clients can provide insights into their reliability and quality of work.
Utilizing these platforms will help you find qualified contractors to manage your renovation projects effectively, ensuring that your house flipping venture in Oklahoma is a success.
Final Thoughts On Flipping Homes In Oklahoma
Embarking on a house-flipping journey in Oklahoma can be challenging, but the rewards can be substantial with the right mindset, a strong work ethic, and the support of a knowledgeable team. The potential for fast returns is enticing, yet it's crucial to approach this venture with a clear understanding of the landscape.
That's where the experts at Real Estate Skills come into play. Our seasoned professionals can provide the guidance and support you need to navigate the complexities of house flipping and wholesaling in the Oklahoma market.
The nuances of house flipping in Oklahoma are many, but by leveraging the insights and strategies available at Real Estate Skills, you can equip yourself with the knowledge necessary to succeed. So, whether you're a seasoned investor or just starting out, let the experts at Real Estate Skills be your guide. Through comprehensive learning resources and expert guidance, we're here to help you turn your dream of flipping houses in Oklahoma into a rewarding reality. Start your journey with us today.
Ready to take your real estate investing to the next level? Learning how to flip homes in Oklahoma is just the beginning. Watch our Free Real Estate Investor Training to learn how our Ultimate Investor Program can unlock even more opportunities and strategies in the Oklahoma market. Don't miss out—take the next step toward maximizing your investment potential today!
*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.
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