I’m Hooked on Flipping!
- It’s stressful !!!
- It’s scary !!!
- It’s risky !!!
- It takes lots and lots of money !!!
But the rewards and the rush are the draw.
Catching that all elusive deal. Finding the below market house that will bring a 5 figure paycheck. Marketing, phone calls, constantly searching websites. Flyers, social media, and always on the lookout for a house that can be purchased for 65% or less of its after repaired value (ARV).
Finding the right property is just the beginning. After the exhilatation of loacating a great deal, the negotiation begins. Phone calls to the owner or the realtor to see if they will budge on the asking price. Trying to create a win/win solution that will work for everyone.
Sometimes, you have to make offers that are so low that you are embarrassed to make the phone call. Others, the price they are asking is workable. It’s a constant evaluation of your numbers, with weeks of give and take negotiation. My latest flip acquisition took almost two years of phone calls, and follow up.
“Sometimes, you have to make offers that are so low that you are embarrassed to make the phone call.”
Once the paperwork is signed, finding and lining up the funding is the next step. If you are self-funded awesome! But, if you are like most flippers, you are using other people’s money. This requires calling your private investors or your bank to line up the funding for the property and/or the fix up costs. Once this is accomplished the real beginning of the project starts.
The day you purchase the property! Now the stop watch starts ticking. What do I mean? The time money value continuum begins. Every day that you or your contractors are working to repair your flip property, the interest and overhead costs begin to eat away at your future profit. The longer it takes to finish the project the less money you make. The shorter the time frame, the more you make. Each minute, each hour, each day, whether the property is being worked on or not, is costing you money! Time is of the essence!
Once the project is done, the best part of the flip. Putting the house and the market and getting paid. (the release) You will now experience relief and anticipation as you look forward to the sale of your house. Most flippers I know list the house with a realtor with whom they have an ongoing relationship. Stage the house to give it maximum eye appeal. Landscape the front of the house for curb appeal. Staged houses with curb appeal usually sell faster and for more. If you are not good at staging hire a professional, it is worth the cost! (the same goes for landscaping)
Finally, after getting the house under contract and jumping through all the hoops, the day of closing! If you have done things right, you should receive a 5 figure paycheck. It makes all the hassles worth it.
If you are like me, you will be addicted and looking for that next flip.