6 tips to prepare for your first or next fix n flip.
- Know Your Area – There are all sorts of things a fix and flipper should know about the area he is flipping. The prices of similar homes that have recently sold in the area are only part of the equation. You have to know the schools, the traffic, if the neighborhood is expecting any major changes, and other details that make it attractive to buyers.
- Know The Market – The fix n flip market is ever-changing, and even neighborhoods and subdivisions follow their own trends. You have to be able to make accurate predictions on what the property will be worth once the renovations are complete. Are there other rehabs to compare to?
- Over Estimate? Whether you’re taking out a hard money loan or saving up your own cash, you must set aside funds for unexpected expenses. Sometimes necessary repairs don’t become apparent until the renovation is underway, and other times they can prove to be far more costly than the budget allows for. Overestimate or have a reserve account built into your budget.
- Understand Holding Time – When you fix n flip real estate, having a solid timeline in mind is essential. Knowing how long you have to complete a project, and keeping everything on schedule, can make a huge difference in the amount of profit you see. Also factor in the amount of time to sell the home once completed.
- Be Aware of the Industry – From bidding, through buying, renovating, and selling, you’ll need to be in contact with numerous professionals. Create relationships you can count on, finding the cheapest does not always make you the most money. Fix and flip projects are about reliable timely resources and professionals that follow through.
- Finding Pros- While some start-ups do all the renovations independently, there are numerous professionals you may need to call on at some point to get an expert job done fast. Electricians, plumbers, contractors, painters, and other helpers are beneficial, but you’ll need to establish relationships with trustworthy people before you begin.