Real Life Flip this House and financing

Monday, July 04, 2011

Update and new projects

While it has been slow, our group just sold a house at less than we had in the house.
Due to holding time and paying too much on the front end this one was a loss.

There is a point here. It is said you make your money the day you buy. We thought we could go up to 75% on this one because the area was getting lots of activity (showings, solds...)

Go with your gut, stick to 65% of ARV as your investment maximum.

Some things we could have avoided and tips to make a faster close:

1. paying too much, there is always another deal. We should have passed.
2. Watch the average % discount off original asking price in an area.
3. What are your buyers alternatives (another similiar area, another house, ..)
4. Buyers today truly want steals and deals. Buyers want new houses for price of old ones, be prepared on how to show, position and market your renovations and upgrades.
5. Buyers are relying on thier realtor, make sure you communicate any repairs made, things that may be needed, be flexible.
6. Make sure house is clean , no need in turning off buyer upon first look.

While flipping is slow, we are looking for another deal and still are very active in financing other investors flips and investments.

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