If you’re the type of real estate investor who prefers to flip properties, you’re always on the lookout for your next project. A successful flipper can identify a potential investment and along with his team quickly evaluate the prospect.investing in real estate and conventional financing

Regardless if the property is found by researching public records, with an agent or even a personal referral, there’s a system that’s followed each and every time during the evaluation process. From buy price to sell price, there’s a lot of activity. But one thing to remember is that once you’ve completed the repairs on the property, will a bank make a mortgage on it?

Borrowers who apply for a mortgage soon find out that they’re not the only thing being approved. Yes, the borrowers must have good credit, a down payment and show the ability to repay the debt but regardless of the borrower’s personal financial profile, if the property doesn’t meet certain requirements, there’s no deal. Investors who buy and sell real estate must keep that in mind.

Any business that sells a product knows that to sell quickly, the product needs to appeal to as broad a market as possible. The more potential buyers, the faster the product will sell. The very same concerns real estate, you want it to appeal to as deep a pool of buyers as possible. And if the property meets conventional and government lending standards, any bank can provide a loan.

The primary consideration is making sure the property is habitable. It needs to be “move in” ready. If the cabinets aren’t in or the bath isn’t completed, you can’t reduce the price to sell the property and expect someone to get a mortgage on the home. A bank won’t make a loan on the home in that condition.

The property can’t be unique or odd in the neighborhood. An obvious example is a geodesic dome structure but a less obvious one is a lone duplex in a neighborhood full of single family, detached homes.  To be “bank ready,” the home must be completed and have similar properties in the area.