With a population resting somewhere in the neighborhood of 581,381, Wyoming is the least populous state in America, according to the U.S. Census Bureau. It is worth noting, however, that despite the lack of people living in the Cowboy State, there may be no better time to learn how to flip houses in Wyoming than now. As it turns out, Wyoming has the twenty-third-highest foreclosure rate and the shortest average foreclosure timelines for homes foreclosed in the first quarter of this year, according to ATTOM Data Solutions' latest Foreclosure Market Report.
With the unique convergence between an average foreclosure rate and the speed at which foreclosures are closing in Wyoming, local home flippers may have an easier time landing a deal than their counterparts in other states. That, combined with a median home value lower than the national average, suggests Wyoming has potential for new investors.
As a result, we have developed this guide to teach you how to flip homes in Wyoming, including:
Flipping houses is a real estate investing strategy involving buying and reselling real property for a profit. However, as its name vaguely suggests, flipping houses is more nuanced than buying and selling real estate.
For starters, “flipping houses” refers to the speed at which real estate investors can figuratively fix and flip their deals from one owner to another. The faster a deal can get done, the more money an investor stands to make. Perhaps even more importantly, the sooner a property sells, the sooner a new deal can be struck with the proceeds from the old one.
Secondly, reselling the home for profit requires improvements to the property. Working within a strict budget, investors will rehab and fix the property. The goal isn’t to spend as much money on the house as possible but to make the home slightly more appealing than those buyers will compare it to. That way, when the time comes to resell the home, investors will have attracted the most buyers without spending too much money.
Ultimately, investors will look to sell the house for more than they invest. According to ATTOM Data Solutions’ year-end 2022 U.S. Home Flipping Report, the average flip resulted in a gross profit of $67,900 last year. At the same time, the house-flipping industry had its most active year in nearly two decades.
“407,417 single-family homes and condos in the United States were flipped in 2022. That was up 14 percent from 357,666 in 2021, and up 58 percent from 2020, to the highest point since at least 2005,” said the report.
Learning how to flip houses in Wyoming starts with understanding the local market. In particular, the data and statistics will dictate how everything transpires, including home flips. Consequently, inventors need to familiarize themselves with today’s most important Wyoming house flipping statistics, including:
*All Wyoming housing market statistics are as of the second quarter of 2023.
Learning how to flip houses in Wyoming is as simple as following the seven steps outlined below:
There is no reason to start flipping houses in Wyoming alone. Instead, look to enlist the services of a mentor who can achieve what you hope to accomplish. Their expertise will go a long way in setting the foundation for your entire career. A great mentor will offer insight, support, and guidance in an industry where each is invaluable.
Even mentors who charge for their guidance can be a worthwhile investment. The knowledge they impart and the ability to avoid costly mistakes can’t be underestimated, and their worth cannot be measured solely by a price tag. Education is critical in this industry; having a mentor can significantly accelerate your progress.
When seeking a mentor in Wyoming, don’t hesitate to take your time and vet candidates thoroughly. Specifically, look for someone whose style aligns with your goals and values. Remember, if you are going to make a career out of this, you’ll want to ensure you are doing it the best way you know how.
Along with finding a house-flipping mentor, new investors will want to get acquainted with the best resources available. Here’s a list of some of the most trusted resources regarding the Wyoming real estate market:
Finding and analyzing a distressed Wyoming investment property doesn’t have to be intimidating for first-time investors. There’s a “rule” specifically designed to make things easier: the 70% rule. While not perfect, the 70% rule does help determine whether or not a deal is worth pursuing.
Here’s how the 70% rule works: First, determine a subject property's after-repair value (ARV) by comparing it to “comps,” or similar, nearby homes. With an idea of how much other houses in a given neighborhood are selling for, investors can land on a ballpark figure for how much their home will be worth.
Next, multiply the ARV by 70% and subtract the estimated repair costs. This calculation gives you the maximum allowable offer (MAO). In its simplest form, the MAO is the highest price you should pay for the property if you want the deal to be worthwhile.
It is crucial for anyone learning how to flip homes in Wyoming that the 70% rule isn’t comprehensive and shouldn’t replace proper analysis. However, it does give new investors a good starting point.
Read Also: How To Find Distressed Properties To Buy
It is beneficial for house flippers to raise capital from outside sources, even if their financial situation awards them the luxury of funding their deals. If for nothing else, using personal capital ties up all your funds in a single deal, and the lack of liquidity limits flexibility. On the other hand, using other people's money promotes scalability and increased optionality.
While private and hard money lenders may charge upwards of 15% in interest (well above traditional banking institutions’ rates), they are still the preferred source of funding for home flippers because of their short-term duration and the speed at which investors can acquire them.
With the money in hand, investors need to move quickly and close on the property by following a few simple steps:
The goal of flipping a home isn’t simply to make the best product possible; it’s to make it without going over budget. As a result, investors are tasked with making budget-friendly renovations and fixes that simultaneously add the most value to the property.
Perhaps even more specifically, most investors will aim to make the subject property the best home on the block, but only by a slim margin; that way, they can increase demand without spending unnecessary money.
According to Remodeling Magazine, the renovations with the best returns in Wyoming are:
House flippers benefit from selling their renovated property quickly. It's common practice to start marketing the property to potential buyers while renovations are underway. Partnering with an experienced real estate agent is an intelligent decision.
A skilled agent can help determine an attractive sale price and accelerate the process. Real estate agents will cost more, but their services often help investors make money.
In the wake of the record appreciation, historically low inventory levels, and rapidly rising interest rates, finding a home to flip in Wyoming isn’t what it used to be. Nonetheless, investors still have plenty of places to turn to when they want to find their next deal. The most common places investors turn to when looking for houses to flip include, but are not limited to:
You do not need a real estate license to flip houses in Wyoming. Instead, anyone who has already learned how to flip houses in Wyoming can do so. That said, while investors don’t need a license to flip homes, they can benefit from having one.
With a license, investors will gain MLS access and an extensive network of like-minded professionals. The benefits can be significant, but they come at a cost. Licensed professionals must pay annual fees and keep up with industry standards, which means passing tests regularly.
Thinking about investing in the Wyoming real estate market? Join Alex Martinez at his FREE training to learn how to get started with house flipping and wholesaling!
Contrary to popular belief, it is possible to flip a house in Wyoming without using your own money. While it is possible to fund an entire flip with cash from your existing accounts, investors should use other people’s money instead. In particular, hard money and private money lenders have become the preferred funding sources of today’s investors.
A hard money loan is cash awarded to investors from a private company specializing in asset-based lending. That means private money lenders will give investors the money they need to flip a house if they can present the lender with an attractive enough deal and prove they can get the job done.
On the other hand, private money originates from anyone with excess capital and a desire to invest it. A private money loan can come from a family member, an acquaintance, or any other contact with cash to invest.
Private and hard money loans coincide with high-interest rates, upwards of 15% in some markets. However, in return for the high rate, investors receive a short-term loan that can be used immediately. The speed of receiving the money is often the difference between locking up a deal and losing it.
As you embark on your journey to flip houses in Wyoming, remember that capital isn't always king. There are ways to get into real estate without a heavy initial investment. If you're wondering how it's possible, we invite you to watch our comprehensive YouTube video on "How To Get Into Real Estate With NO MONEY!"
This video will provide you with practical strategies and invaluable insights on starting your real estate journey without breaking the bank!
If an investor hasn’t learned how to fix and flip homes in Wyoming, there’s another real estate exit strategy that doesn’t require the funds to come out of their pocket: wholesaling.
In wholesaling, the investor doesn’t purchase real estate. Instead, they obtain the legal rights to buy the property. That’s an important distinction; the investor has the sole right to buy the subject property. As a result, they can sell their rights to an end buyer for a fee.
Learning how to flip houses in Wyoming looks like a smart move in today’s market. However, investors can look even more intelligent if they focus on the cities with the most opportunities. That said, here are some of the best cities to flip houses in Wyoming:
Mastering the art of home flipping in Wyoming is a journey that requires dedication, hard work, and a wealth of knowledge. Each phase of the process, from identifying potential investment properties to executing profitable renovations, is crucial to your overall success.
While navigating these steps, it's beneficial to have an experienced mentor by your side. With their insights, you can make informed decisions that increase your chances of success in Wyoming's real estate market. However, having a mentor is just one piece of the puzzle.
At Real Estate Skills, we offer comprehensive real estate training and education tailored to every aspect of home flipping. Our resources provide you with the knowledge and skills needed to overcome challenges, make strategic decisions, and ultimately, achieve your real estate investment goals.
Don't navigate this journey alone. Join our Real Estate Skills community today and get the training, support, and mentorship you need to become a successful home flipper in Wyoming.
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