Before You Fix And Flip Homes Ask Yourself These 7 Questions

thBefore You Fix And Flip

  1. Do you know the area? There are all sorts of things a fix and flip home rehabber should know about the territory he works in. The price of similar homes that have recently sold in the area are only part of the equation. You have to know the schools, what the traffic is like, if the neighborhood is expecting any major changes, and other seemingly minute details.
  1. Do you know the market? The fix and 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.
  1. Do you have a cushion? Whether you’re taking out a private 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.
  1. Do you understand the holding time? When you fix and flip properties, 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.
  1. Are you aware of the industry? From bidding, through buying, renovating, and selling, you’ll need to be in contact with numerous professionals. You also have to have a keen understanding of the process, and be familiar with trends.
  1. Do you know a realtor that works in the industry? Some fix and flip rehabbers try to sell a home on their own, which can be a particularly big challenge when it comes to marketing and negotiating with buyers. It’s important to partner up with a realtor, but not just anyone will do. If you partner with someone who works in the industry already, you’ll have instant access to a huge knowledge base. You’ll also be working with someone who is highly familiar with your goals, and knows how to flip a home fast, for maximum profit.
  1. Who is going to do the work for you? While some fix and flip rehabbers 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.

Arm Yourself with the Knowledge Necessary to Be Successful when You Fix and Flip Homes

You can’t rely on others to provide accurate information on a neighborhood or particular home. In order to be truly successful, you’ll need to do the legwork when it comes to determining costs, timelines, values, and necessary repairs. “Any person on the street may tell you one thing, but at the end of the day, you have to do the research for yourself and understand what exactly you’re doing.”

Avoid the Common Pitfalls of Fix and Flip Properties by Evaluating each One Independently

For thoses who want to fix and flip properties, “Don’t just buy a house to buy it!” Know the stats on each home, and act on real information, not impulse. “There are always ‘deals’ out there,” but having a solid comprehension of the risk involved and taking that into account when performing the initial evaluation of a property is an absolute must.

Even though the home rehab enthusiast often receives tips from others as to which homes are hot for flipping, the best deals are the ones you find yourself. Have a system for evaluating each home before you dive into a project.

If you are thinking about starting any fix and flip projects consider first signing up with my mentoring program by calling me at 505-404-1131.

P.S. Realvolve is the software that we use as our Real Estate Investing tool here at Mountain View Investors. Check out Realvolve for yourself, you’ll get a special offer if you go to:

Your Business. Evolved

P.S.S. To learn more about my all-new, exclusive V.I.P. Apprenticeship program go to:

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About The Author

Robb Krautbauer

Owner and CEO of Mountatin View Investors, Inc. Robb has executed over 75 commercial real estate deals since 2011. In this time, he has raised over $3mm, with a transaction volume of over $40mm.

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