u/ninety7expo

​

Why?

Cause thats kind of like walking into a restaurant and asking can I get food?

But what are you hungry for?

Instead, start with what am I actually trying to accomplish, and what type of capital makes sense for that?

Maybe you need equipment, more employees, capital to take on a bigger contract, working capital while waiting on receivables, expansion, or maybe more capacity.

Figure out what type of capital could potentially help you get to what you are trying to accomplish.

Because more money isn't always the answer.

Sometimes you just need the right money for the right purpose.

I think holding costs deserve way more attention during a flip.

Every month the property sits there, the clock is running.

Possible costs include:

Mortgage/interest

Taxes

Insurance

Utilities

Maintenance

HOA

Security

Lawn care

Unexpected repairs

If I planned for a 4-month project and it becomes 7 months, that extra time can seriously change the deal.

And somehow the house doesn't care that my timeline was “very realistic.”

You need a Buffer!!!!

​

Before you buy your first property, build your team.

You don’t have to know everything yourself—you just need the right people around you.

Here are the key people you’ll want:

CONTRACTOR, REAL ESTATE AGENT, LENDER, HOME INSPECTOR, REAL ESTATE ATTORNEY, INSURANCE AGENT AND AN ACCOUNTANT.

The Why:

Contractor – Helps estimate repair costs

Real Estate Agent – Helps with comps and understanding the market

Lender – Helps you understand your financing options

Home Inspector – Helps identify potential problems

Real Estate Attorney – Helps protect your transaction

Insurance Agent – Helps make sure you have the right coverage

Accountant – Helps you understand the tax and financial side

First-timer tip: Don’t wait until you have a property under contract to start building your team.

The right team can help you avoid expensive mistakes and make better decisions.

Happy Flipping!!!!

Rehab estimates have a funny way of starting at $40K and somehow becoming $65K.

Before you touch a property, you want to think through the entire scope:

Roof

HVAC

Plumbing

Electrical

Kitchen

Bathrooms

Flooring

Paint

Windows

Exterior

Landscaping

Permits

And then I add a contingency.

Because apparently houses enjoy surprises.

Know your numbers!!!!

I think one of the easiest ways to get in trouble with a fix & flip is falling in love with the house before falling in love with the numbers.

Pretty kitchen? Great. Huge backyard? Nice Potential?

Before you get excited, you need to know:

Purchase price, renovation budget, holding costs, closing costs, realistic ARV, selling costs and expected profit.

I’d rather kill a bad deal on paper than discover it halfway through demolition.

Just because you love the property doesn’t mean the deal makes sense.

Enjoy the rest of the day!

Enjoy the rest of the day!