Investing in real estate has proven to be one of the most incredible wealth-building vehicles of our time. In particular, home flipping has become synonymous with the most popular exit strategies and the highest profit margins in the industry. Investors nationwide are flipping homes with a high level of success, and the Oregon real estate market is no exception.
With foreclosure activity doubling over the last year, according to ATTOM Data Solutions’ Year-End 2022 U.S. Foreclosure Market Report, There may be no better time to learn how to flip houses in Oregon. Profit potential remains in today’s unique real estate market, and opportunities to secure deals under market value are increasing.
With conditions growing more favorable, investors can benefit from learning how to flip houses in Oregon. As a result, we’ve developed this guide to teach you all the house-flipping tips you need to know, including the following:
Flipping houses is a popular real estate investing strategy that centers on three foundational pillars: buying, rehabbing, and selling. Each pillar represents an independent step in the process, but the synergy between them is required to maximize profit margins and mitigate inefficiencies. Only when each step complements the next will real estate investors increase their odds of realizing success.
Otherwise known as rehabbing, home flipping begins with purchasing properties for less than their actual market value. In doing so, house flippers focus on homes that are undervalued, require repairs, or facing foreclosure. Many homeowners are willing to sell their assets for a discounted purchase price, which bodes well for real estate flippers.
Investors perform essential upgrades and repairs after acquiring the property for a discount. Similar to the first step, renovations are made to maximize profit potential. That means investors can’t simply make any changes they want; they need to make the right changes. The objective is to enhance the property's appeal to potential homebuyers while staying within a strict budget.
Typically, real estate investors aim to make the property slightly more appealing than comparable homes. That way, the house will receive the most attention on the market without investors overspending on unnecessary renovations. Done correctly, the attention will become competition, increasing inventors’ profit margins even further. The more people are interested in the home, the more likely it is to sell over the asking price and increase the investor’s return on investment (ROI).
If you want to learn how to start flipping, your small business should have a good idea of what flipping is.
Even today’s greatest investors are only as good as the information they are working with. That said, here’s a quick look at some of today’s most reliable Oregon house-flipping data and statistics:
*All Oregon housing market statistics are as of April 2023.
As a beginner or experienced house flipper, it's critical to arm yourself with comprehensive market data, track economic trends, and understand the median home price within your target sub-market. This information can guide your investment decisions, helping you identify promising opportunities and risks in the Oregon housing market. Consider the following resources for your research:
Zillow Housing Data Research: Zillow provides an easy-to-understand breakdown of the housing market. The data offers historical insight into home values, forecasts, inventory, list and sales prices, and even price reductions.
Realtor.com Oregon Housing Market Data: Realtor.com's housing market pages offer real estate investors listed properties in Oregon by county, city, and ZIP code.
Anyone interested in learning how to flip houses in Oregon should follow the seven steps outlined below:
Beginners must actively seek to educate themselves on flipping houses in Oregon. While reading credible literature and conducting thorough research is beneficial, the most effective way to enhance house-flipping skills is by finding a mentor experienced in the field. A truly great mentor—someone who has made success habitual—is invaluable. The knowledge and expertise a mentor can share will help new investors mitigate risk, optimize efficiency, and create a profitable business plan. When all is said and done, first-time investors can turn one deal into an entire flipping business with the help of the right mentor.
At Real Estate Skills, we understand the process of house flipping can seem quite complex. There are many steps involved - from learning the buying process and gathering key market data to managing renovations and creating a smart exit strategy. All these steps can be tricky and might even lead to costly mistakes. That's where our real estate experts step in.
Our team of experienced professionals is ready to mentor you every step of the way. Let us help you identify good markets for investment, guide you through the details of renovating a property, and connect you with a wide network of real estate professionals to assist in your venture. With our guidance, you can feel confident in navigating the complicated world of house flipping!
Ready to invest in the Oregon real estate market? Join Alex Martinez at his FREE training to learn how to get started with house flipping and wholesaling!
If you're contemplating investing in the Oregon real estate market, it's crucial to familiarize yourself with the current trends, licensing requirements, property taxes, and sought-after neighborhoods in the region. A fantastic starting point is the wealth of educational material found on local realtor association websites. Here are some examples of realtor associations in significant cities:
By exploring these websites, you can glean valuable insights into the local real estate market and connect with seasoned professionals who can assist you through the buying and selling process. You might additionally discover information on licensing requirements and regulations specific to Oregon that can aid you in making knowledgeable investment decisions.
Analyzing distressed investment properties in Oregon can be challenging, but multiple methods are available. For those learning how to flip houses in Oregon, it is recommended to begin with the 70% rule. Although it may not be the most precise metric, the 70% rule offers new investors a general guideline on how much they can invest in a deal while ensuring sufficient profit margins.
Investors must perform initial calculations to apply the 70% rule to a deal. Firstly, determine the subject property's after-repair value (ARV), which represents the home's expected value after repairs. The most reliable method to determine the ARV is evaluating recently sold comparable properties (comps) in the same neighborhood.
Next, multiply the ARV by 70% (or 0.70) and deduct the estimated rehab costs (like hiring a general contractor and subsequent material costs) to determine the maximum allowable offer (MAO). The MAO represents the maximum amount you can invest in the deal while ensuring sufficient room for profitable returns.
Here is the formula:
ARV - Fixed Cost - Rehab Costs - Desired Profit = Maximum Allowable Offer (MAO)
While the 70% rule is not without limitations and should be supplemented by a more comprehensive analysis, it is a valuable starting point for new home flippers. At the very least, the 70% rule will determine if a deal is worth looking more into.
Read Also: How To Find Distressed Properties To Buy
If a subject property looks promising, investors will want to raise capital to fund the deal. However, investors should consider working with private and hard money lenders instead of turning to traditional banking institutions that provide 15- and 30-year mortgage options. While private and hard money lenders will cost more in interest (oftentimes upwards of 15.0% or more), they are well worth the added expenses.
For starters, private and hard money lenders don’t have strict approval requirements. Frequently, investors simply need to prove they are worth investing in to receive a loan. Secondly, the speed at which a loan can be transferred to an investor is second to none. Investors may receive the funds in as little as a few days, which provides plenty of leverage when making an offer on a home. Lastly, these flip loans are short-term and won’t coincide with years of amortized payments.
Of course, it is possible to fund your deal, but raising capital allows investors to be liquid with their own money and scale operations more effectively.
With the money in hand, it’s time to buy the subject property. Oregon is not an attorney-close state, meaning lawyers are not essential for closing but may be advised by your real estate agent. Since Oregon is an escrow state, the closing process will follow these steps:
When flipping a home, investors focus on cost-effective renovations that enhance the property's value. To increase demand, they aim to make the property slightly better than neighboring homes. By executing the renovations effectively, investors can offer the most appealing house on the market while still managing to keep it under budget.
According to Remodeling Magazine, the upgrades with the best returns in Oregon, and the entire Pacific region, are:
The next step is to sell the house when the renovations are complete. Investors can market the property themselves, hosting open houses and listing it everywhere possible. Still, they may find working with a professional real estate agent more appealing. A truly great agent will market the home anywhere and everywhere necessary to execute a timely and profitable sale. And while their services will come at a cost, there’s a good chance their expertise will net more profits from the sale price than the cost of their fees.
Not surprisingly, the goal is to sell the home for more than the total amount invested, and the best way to do that is with an agent who has intimate knowledge of the local market.
While it’s true that home prices in Oregon are more expensive than ever, home flippers may take solace because there are still ways to find houses to flip. Below you’ll find a list of the best ways to find houses to flip in Oregon:
All these strategies have their unique benefits, but one resource stands out as remarkably efficient for home flippers, the MLS. Gaining access to this platform might appear challenging without a real estate license. But don't worry, Real Estate Skills has a solution.
We invite you to watch our in-depth video on "How to Gain Access to the MLS Without a License." We provide you with key insights and practical tips to unlock potential property opportunities you might have been missing out on. Start maximizing your house-flipping endeavors in Oregon today with Real Estate Skills!
You do not need a real estate license to flip houses in Oregon. However, real estate investors in Oregon may benefit from getting their real estate license.
At the very least, a license grants investors access to a nationwide network of real estate professionals and their most valuable tool: the MLS. Of course, to become licensed, investors will need to keep up with required learning courses and pay annual fees, so it’s best to weigh the pros and cons before taking any action.
Flipping houses in Oregon doesn’t require investors to tap into their savings or checking accounts. Investors can flip homes if they don’t have any money at all. Instead, they are advised to use other people’s money, specifically funds obtained from private and hard money lenders.
These individuals are also investors looking for the best place to invest their capital; you just need to convince them that your deal is worth their money. In doing so, bring a potential deal to their table and pitch why they should lend you the money. If you can convince them that you are worth investing in, you should be able to access the funds almost immediately.
Anyone who hasn’t learned how to flip houses in Oregon isn’t out of luck; they can still invest with no money. Another option for flipping deals without using personal money is wholesaling. It involves obtaining rights to buy a property and selling those rights to an end buyer for a fee.
Wholesaling properties is a lower-capital and lower-risk approach for entering the Oregon real estate investing industry.
Thinking about investing in real estate? Join Alex Martinez at his FREE training to learn how to get started with house flipping and wholesaling!
If you're interested in flipping real estate in Oregon, certain cities stand out as ideal markets. Oregon's varied landscape, robust economy, and cultural vibrancy make it an attractive state for real estate investment. For those planning on house flipping in Oregon, the cities of Portland, Eugene, Bend, and Salem offer favorable opportunities:
Portland: Known for its eclectic charm and active lifestyle, Portland presents a promising market for house flipping. According to Zillow, home values in Portland have been steadily increasing over the last 5 years indicating a healthy demand for housing. However, as of April 2023, the average home value in Portland is $543,308, depreciating 5.7% over the past year
Eugene: Eugene's thriving arts scene, high-quality education institutions, and desirable quality of life make it a strong contender for house flipping. The Zillow Home Value Index reports a steady upward trend of 0.3% over the past year. The average home value in Eugene is $469,043 making it a potentially profitable choice for investing in real estate.
Bend: Bend's real estate market has been on the rise since 2018, reflecting its growing popularity. Known for its outstanding outdoor activities and beautiful landscapes, Bend has been attracting new residents and driving housing demand over a 5-year period. However, the last year shows a depreciation of 5.7% resulting in an average home value of $687,880.
Salem: As the capital of Oregon, Salem boasts a robust economy, diverse amenities, and rich cultural history. The average Salem home value is $420,092, increasing by 0.2% since 2022.
Learning how to flip houses in Oregon could prove to be a profitable venture. However, rehabbing is an extensive and involved process that can intimidate even experienced investors. As a result, it’s best to go into the process as prepared as possible. By leveraging the guidance of a mentor and prioritizing thorough research, even newcomers can navigate the best place to flip houses in Oregon.
Here at Real Estate Skills, we specialize in providing the insights, resources, and guidance needed to thrive in the unique Oregon house-flipping market. Our team of professionals is equipped with a deep understanding of this specific real estate landscape and is committed to sharing this expertise with you.
We aim to empower you with the knowledge and skillset necessary to evaluate potential deals effectively, secure the right funding, and make well-informed decisions that optimize your profitability in the Oregon real estate market.
Get in touch today to take your house-flipping ambitions from mere ideas to profitable realities. We're ready to guide you every step of the way, providing the support you need to confidently flip houses in Oregon. Begin your learning journey with Real Estate Skills, and flip houses in Oregon with newfound confidence!
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