Investors may choose to diversify their holdings with real estate, including fix and flip properties. Before you buy with the intention of renovating and reselling, there are a few things that you should know.
Here are some tips for being successful with fix and flip real estate properties:
Never go into a fix and flip deal without a sound and solid business plan. In fact, every investor and endeavor should start with a business plan that describes the purpose and mission of the business- as well as the goals, expected returns, financing details, and a market analysis. If you are borrowing money for your fix and flip, a business plan may be one of the requested and required pieces of documentation that you need prior to getting lender approval.
Estimates and Quotes
Naturally, you will need to know how much it will cost to fix up the property so you can flip it later. Talk with professional contractors for cost breakdowns and pricing estimates on the materials and labor to fix up your property. If you are borrowing money to make these renovations, try to pair up with a lender
Try to surround yourself with a knowledgeable team- one that has your best interests in-mind. Choose advisors for different aspects of the undertaking- such as a reputable building contractor, a banker or lender, and a real estate professional- to guide you through the process.
You cannot do it all, all the time. Choose trusted coworkers, colleagues, or aids to help out by delegating tasks accordingly. If tasks are of a lesser priority, such as time-consuming maintenance, delegate these chores to someone else and put your focus on other areas of the investment. Part of being a successful leader- in real estate or other industries- is learning that to be an effective delegator.
Want to learn more? Do you want more information about financing your fix and flip investment? Talk to the money professionals at Magis Funding; call or visit today.