Gen Z is the latest generation to enter the fix-and-flip market.
If you are part of this group, you were born between 1997 and 2012 and are sandwiched between Millennials and Gen Alpha.
Because you grew up in a fully digital world, your approach to fix-and-flip investments is unlike any other.
In this guide, we’ll explore the forward-thinking strategies driving Gen Z’s success in the market.
Let’s Get Your Loan Started
Gen Z enters the chat: The rise of a new generation of house flippers
For Gen Z, house flipping is a project of passion and profit.
It’s about creating something new, making sustainable choices, and leveraging technology.
This generation is an example to others that you don’t need decades of experience to be a successful house flipper in 2024—you just need to know how to make the most of the tools at your disposal.
How to use technology to find the best deals
Gen Z is more than comfortable with data and digital tools, which can offer them a significant competitive edge.
Real estate platforms
Traditional house-flipping strategies often began with contacting real estate agents or physically searching neighborhoods.
While this is still a valuable tactic, Gen Z typically goes straight to digital real estate platforms first, like Zillow, Realtor.com, Redfin, Trulia, and others, which offer:
- Real-time data on property values
- Property details regarding past foreclosures and home details such as square footage, lot size, beds, bathrooms, etc.
- Photos of the property
- Insights on neighborhood trends
- Market forecasts
Apps and software
Gen Z also uses specialized apps and software like DealMachine that provide detailed reports and can help them uncover underpriced properties, distressed homes, and other hidden gems.
Virtual tools
Embracing virtual tools like tours, 3D walkthroughs, and drone footage gives them an upper hand in choosing out-of-state properties.
Overall, this generation enjoys a streamlined, digital approach to all aspects of the fix-and-flip process, from finding properties to making offers and closing deals.
Leveraging social media for sourcing and selling
Gen Z is well-versed in social media and online communities.
This group of investors takes full advantage of real estate groups on Facebook, LinkedIn, and Reddit, where off-market deals and other investment opportunities are frequently posted.
They also will hunt for deals and new listings on TikTok and Instagram, leveraging hashtags and geotags to connect with the right opportunities.
Natural marketers
Because they easily navigate the digital world, Gen Zers are natural marketers and often build a personal brand organically, thanks to their desire to share.
Along the house flipping process, they may post photos and videos of their progress, which helps them to:
- Establish credibility
- Attract a following
- Build trust
They often invest in professional photography, drone footage, and virtual tours to make their listings stand out online.
Relationship builders
Gen Z’s online activity helps them to build relationships and develop a strong network of real estate agents, lenders, and other investors and professionals.
These connections make it easier for Gen Z investors to find properties, renovate them, and quickly sell them for a profit.
Sustainable flipping practices
Gen Z is helping usher in an era of sustainability that will likely continue for generations to come.
Millennial and Gen Z homebuyers are increasingly hunting for properties with eco-friendly features, and investors considering this shift in consumer preferences will undoubtedly enjoy a competitive advantage.
Sustainable housing features include:
- Recycled and reclaimed materials
- Low-VOC paints and finishes
- Eco-friendly insulation
- Energy-efficient windows and lighting
- Smart thermostats
- Solar panels and other renewable energy sources
- Water-efficient appliances
- Home automation systems
Gen Z doesn’t view sustainability as a homebuying trend but as the future.
Cost-conscious renovations for maximum profits
Because Gen Z grew up with YouTube tutorials and online forums, many have become true DIY enthusiasts who aren’t afraid to complete projects themselves.
On one hand, this skill set helps them to save on labor costs and maximize their profit margins.
On the other hand, Gen Z needs to recognize when it’s most cost-effective to hire a pro rather than attempt a project on their own.
When to DIY vs. call in a pro
Fix-and-flip investors should focus on projects within their skillset with a low risk of long-term damage.
Common DIY projects for house flips include:
- Painting walls and cabinets
- Installing new light fixtures
- Putting down laminate or vinyl flooring
- Landscaping
Complicated or potentially risky projects that may require a professional include:
- Electrical work
- Plumbing
- Structural improvements
- Roofing repairs or replacements
When beginning a fix-and-flip project, the top priority is establishing a realistic budget for DIY and professional projects.
Gen Z flippers often use affordable sources for materials to keep costs down, including recycled materials.
Investing in up-and-coming neighborhoods
Accurately identifying emerging markets is an important skill for fix-and-flip investors.
While this skill often comes with time and experience, some Gen Z flippers are catching on quickly thanks to their data and technology skills.
Here’s how to sharpen this skill:
- Economic indicators: Look for areas with new businesses, schools, or healthcare facilities and population growth
- Real estate trends: Look for rising property prices and rental rates, decreasing days on the market for listings, and a growing interest from investors or developers
- Revitalization: Look for areas that are improving and attracting trendy new restaurants or boutiques
Up-and-coming areas generally have a lower cost of entry and a greater potential for appreciation.
Gen Z’s digital networking abilities can help position them for success by identifying and embracing new opportunities.
Creative financing options
The limitations of traditional financing do not hold resourceful and adaptable generations back.
In their online research, many house-flipping Gen Zers conclude that banks and credit unions simply cannot offer them the speed and flexibility they need to complete renovation projects.
Enter hard money loans
Hard money loans have become popular among Gen Z and Millennials because they are secured by the property rather than the borrower’s financial profile.
These types of loans are approved rapidly and can cover the costs of both purchasing and renovating a property.
With Marquee Funding Group, if your deal makes sense, our qualifications flex to meet your needs, and our rates adjust for straightforward financing.
Partner with Marquee Funding Group
Whether this is your first or 500th flip, Marquee Funding Group can help.
If you need a mortgage approved for your flip, let us take a look—we fund loans others won’t, with a common-sense approach to lending backed by decades of experience.
No matter your generation, we invite you to discuss your project.
Submit your loan scenario here.