Quick Tips on Flipping - Part TwoTuesday May 24th 2011
Keep track of all your costs along with your progress. Not only does it help with determining your return on investment, it could also be asked for by an underwriter during the closing process.
Remember it is business…look at the numbers, do they make sense? If not, move on to the next project. Listen to your Real Estate Broker on pricing. It is worse to hold onto a property that you are trying to sell at a price it may not be worth than selling it at a lower price and moving on to the next flip. Stay realistic on what your property is worth. Holding onto a house for too long will reduce your profit.
Hire a good team…From your contractor to your real estate agent, a good team is essential. From the time you buy your property to the time you sell the same people should be there. If the agent is able to walk through the house and see the improvements you are making prior to putting your house on the market that will help your agent with selling. A good agent can also show you what your comparable listings are so you can see what the market is doing in your area, which will also help you make decisions by knowing your target buyer. Communication is key, the contractor, stager, real estate agent, landscaper should have a steady communication so everyone is on the right track and there is no time wasted. When inspection time comes the agent should be able to communicate to the contractor things that may have been called, so it can be dealt with a time sufficient way.