Before You Flip
1. You Make Money When You Buy, Not When You Sell
Wise investors know that their money is made at the purchase of a property and not at the sale. Many people acquire a property with intentions of making a huge profit at settlement only to find out that after dealing with a child of the devil(contractors) they could not make any money after rehabbing because the purchase price was to high. When an investor obtains a property they must insure that they have enough cash to make renovations and a cushion for when things don't go as planned. (and that will most likely happen)
2. Please Get An Inspection
My mom always said "Wheres Your Common Sense". Get a inspection done on the property. Coming out of pocket a few hundred dollars can save an investor thousands on potential problems that cant be seen. An added benefit of an inspection is that if a major problem is to arise an inspection report can provide a investor with a potential way out of the contract with no negative affects.
3. Don't Go The DIY Route
Unless you yourself are a licensed contractor don't try to tackle the problem yourself. An investors best bet is to shop around with several contractors and sub-contractors to get work done quickly. If you take nothing seriously out of this blog take head to this. Contractors are not your friends and this is strictly business. So much of your profit margin lays in the hands of your contractors so you must stay on top of them. A experienced and most of all honest contractor is worth their weight in gold and can help you fast track to retirement, but can also lead you on a path to destruction in an instant.
4. List The Property 1-5% Below Market Value
You need to make money as quickly as possible so selling the property fast is crucial so that you can move on to the next investment. Undercutting your competition is crucial. If you look to sell a home for top dollar to make a couple extra thousand and end up holding out for 6 more months your just losing money. You must set your home up to blow out the competition. Also take note, this is a buyer market and a buyer looking to get a 6% seller subsidy is common so build that 6% give back into your purchase price.
5. Use An Agent
Don't try to sell yourself. Hoping for someone to dive down your street and see your sign is not the way to go. An agent with access to the MLS has the ability to broadcast your investment to the world. This also frees up an investor to hunt for future investments. When selling yourself your looking for magic to happen and in the real world there is no magic only hard work and dedication.