The first step in the flipping process is finding the right property. You will be competing with other investors for the limited properties that are available but it will still be important to purchase a property based solely on the numbers and not emotions. Will this property meet your financial objectives when you run the numbers. Always fall in love with the deal, not the property. To make sure the numbers work, you will need to gather the following information:
- What are the comparable properties selling for in the same neighborhood? Be sure you are comparing apples to apples as adjoining neighborhoods can be in a drastically different price point and will alter the numbers.
- With that information in hand, what is the expected selling price once the property is in good condition?
- What are the expected repair costs and other expenses that will be incurred like permits, utilities while you hold title, taxes, etc?
- What is the expected profit?
Once you have all of the data, you can make an informed decision. If it doesn't work on paper, walk away. I have an excel program that will assist you in this process. If you'd like my assistance, just give me a ring at 402-680-3945 or email me at email@example.com As always, there is no commission paid on the buying side so you have nothing to lose and a whole lot to gain by using my services as a Certified Investment Specialist. I look forward to helping you build your portfolio.
Dick Gibb and the Maximum Exposure Team