5 Essential Steps for Flipping houses in Pearland

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Pearland, the city in the Houston area that is expanding at the quickest rate, features excellent schools, inexpensive housing, safe neighborhoods, and a high standard of living. Flipping houses in Pearland is a lucrative option for real estate investors as the Texas city continues to be on the boom.

Pearland is on track to become the next significant employment center in the Houston area after millions of square feet of retail, commercial, and residential building were finished in the last ten years. You can enjoy all that Houston has to offer, including world-class cultural attractions, professional sports, and recreational activities, with just a 20-minute drive to downtown.

2022 is a great year to start a fix and flip project because of pricing competition for residential properties and a national housing crisis. Due to the pandemic, many individuals, particularly in the South, have begun moving from cities to the suburbs and purchasing any homes they can find nearby.

In light of all of this, Pearland, Texas is one city where a fix and flip is particularly likely to result in a significant profit. When you want to start flipping homes of the nation’s second-most populated state, you’ll find plenty of fix and flip opportunities.

Pearland, Houston offers a lot of great opportunities for savvy house flippers, but knowledge of how to succeed at flipping houses in Pearland is crucial. Fortunately for you, this guide deconstructs every essential element of Houston house flipping to put you on the fast track to success.

Steps for Flipping Houses in Pearland

You should be familiar with the fundamental stages involved in Pearland house flipping before diving right in.

1. Select The Location

Finding a suitable house to flip is the first step in Pearland house flipping. Keep an eye out for older, foreclosed homes. Once they have been fixed up, they are less expensive to purchase and sell.

Choose a home with a cheaper price. You can renovate this for less money, and once you’re done, you can sell it for more money.

To help you decide how much to invest, find out what other properties in the Pearland region are worth on average. Make sure you avoid making an investment in anything that will lose value over time.

2. Apply the 70% Rule

The 70% rule is used to determine the highest sale price that may be made on a property without going overboard. To determine how much to offer for Pearland flip houses, you would utilize a formula. Your objective is to boost your revenue by at least 30%.

Compare the market value and selling prices of nearby homes that are comparable. Utilize that to calculate your ARV (after repair value).
Determine the approximate cost of the required repairs. Take into account the extra expenses, including closing and holding fees, property taxes, loan repayments, insurance prices, and other costs.

The formula for the 70% rule is as follows: max offer price = ARV multiplied by 0.70 – repair expenses. If you stick with it, you will benefit from this rule. Maintain your spending plan and finish the project within the loan’s deadline. Try to stay as near to 70% as you can.

3. Locate a Lender.

The best option is to pay cash if you are able to do so. There won’t be any pressure from loans, interest rates, or deadlines. If you are unable to pay with cash, consider taking out a loan from a trustworthy lender. ​

Look for that lender. You can borrow money from a private lender if you locate one who wants to invest in real estate and has the money to do so but lacks the time or expertise to fix up a house.

Hard money loans are available to seasoned investors who wish to flip properties with no money down. With this loan, you borrow money at a high rate of interest while also paying additional points.

You can most likely borrow more money than the typical banking institution will. The 70% rule is frequently used by hard money lenders to defend the size of their loans.

4. Upgrade Your Property Without Losing Money

Create a budget and plan ahead. Be aware of the property’s value and how much it will cost to undertake the required modifications without going under. Without exceeding your budget, you can make the house look brand new.

The value of the home can still be raised by making modest improvements such replacing worktops, refinishing floors, repainting, hanging wallpaper, or upgrading appliances. You can sell more quickly and make a healthy profit.

5. Market High

Now is the time to sell. Set the sale price at the lower end of the price range and use that as a beginning bid because you’ve already determined your highest asking price and are aware of the value of properties in the neighborhood.


While a lot of fix and flip investors choose to finance the expenses from their own pocket, you don’t have to feel at a disadvantage if you cannot furnish the amount for purchasing the property and conducting the repairs from your own resources or don’t want rehabbing to have an impact on your liquidity. Other possibilities for financing the purchase of your property can be investigated if you are unable to pay cash.

You might choose a hard money loan, which has a brief repayment period and a high rate of interest. Hard money loans are typically obtained by real estate flippers who plan to utilize their property as security for the loans. The typical loan length is one to three years. The biggest advantage of fix and flip loans from hard money lenders is that they are flexible in their underwriting. This means that you can easily qualify for a hard money loan on properties that conventional lenders are not likely to loan on. Another advantage is that the lenders use the property as collateral rather than individual creditworthiness. Your personal financial state or credit history doesn’t factor in when taking a loan. The process of getting these loans is also significantly quicker which gives you an upper hand when dealing with competitive real estate markets such as Pearland.

HELOC, that is a line of credit produced from your individual home equity, is an additional choice. It functions similarly to a continuous credit line, where you can borrow up to a predetermined highest number, pay it back, and then borrow again. Even though it feels like you can get cash whenever you need it, this alternative requires a solid credit rating.

The home equity loan (HEL), that you get as a lump sum amount drawn from your home equity, is a third choice. This kind of credit usually has a fixed interest rate, making it simple for you to keep track of your payments. This kind of financing is suitable for one-time expenses like remodeling a home office. Nevertheless, there are a number of fees that must be paid, such as  processing fees, origination fees, appraisal fees, and more.

When buying a home in Pearland, fixing it up, and then selling it, you can get a hard money loan from 14th Street Capital, a seasoned lender. Flexible terms and low documentation are regular features of these quick, no-process hard money loans.