So, you’ve been watching TV and gotten hooked on rehab shows. These shows have grown in popularity, just look at the 15 best HGTV shows of all time. Now you figure you and your partner got it down and it looks like a win situation. You can make some money and spend time doing it together. In the real world this is just not as easy as it’s seems.
So many people have went bankrupt on their first attempted flip, not just with the 2007 crash of the housing market. There are a lot of blogs and forums out here which people have told their horror stories of what they went through. These sites are an important resource when starting out. If it wasn’t for some of the sites I visit regularly, I wouldn’t be where I am now.
Starting Out Small
When starting out you want to take on a small project. You will be able to learn the same process as if you were going to take on bigger ones. Some people have done one rehab and determined that it wasn’t for them. My first project started when I got a call and was told I need to sell my house fast in Waldorf MD. This was a small townhouse and needed quite a bit of work. The work that needed to be down was less than 30k and it talk me so much. My profit wasn’t what I thought but the learning process was well worth it.
Build A Team
You want to make sure you have a team in place. This ranges from a title company, contractors, lenders, and a real estate agent. If you start doing a few rehabs a year it could be beneficial for you or your partner to obtain your real estate license. Having a mentor or someone you can refer to when you have questions is invaluable. There is a lot of information online but being able to have someone buy your side will cause the rehab to go so much smoother.
Where Are The Leads Coming From
When deciding to start rehabbing to fix and flip properties, it’s not as easy as just looking at the MLS and finding house. I’m not saying you’ll never find these deals for MLS sites like Zillow but it’s not often the good deals are there. You’ll have to market for these deals, talk to wholesalers who find the deals, add a profit on top and then assign them to you. You can call the sell my house fast signs. This is going to take a lot of networking. You are going to have to put in offers, and a lot of them. Know your numbers, price of the house – minus your rehab cost – minus fees (closing cost and cost of borrowing money) and you’ll have your profit. Don’t try to lie to yourself to make the numbers work.
Stay Consistent And Motivated
It’s easy to get frustrated when things aren’t going your way. Remember the saying “Rome wasn’t built in a day”. Just like going to the gym, you’re not going to get results on day 1 but if you keep going and eat right, the reward is around the corner. Take time to educate yourself on getting knowledge of real estate investing.