Let’s get it out of the way early on. As unrealistic as some of the HGTV shows can be, we’ve all seen them. So whether you love to hate them or just flat out love them, you’ve probably seen “Flip of Flop”. While the show can make it look easy, there is a lot of truth in the name. Real estate investing can be a great success if you’re prepared or it can be a total flop if you’re not. With that said we’d like to kick of a series of posts. They will be focusing on a few things to keep in mind when venturing into real estate investing. The first installment will be focusing on the speed.
You found a great property but now it’s time to get to work! We love our borrowers and want to see them succeed, and that’s why we love to see them exit a project with speed. If you can complete the work in a timely manner you can save significant money on holding costs. These can include interest, taxes, insurance, and more. Every day the project is delayed, you incur a little more expense. To avoid this it’s important to have a good idea of your scope of work prior to closing and have your subcontractors read to go!
In addition, another key factor to sticking to a timeline is to make sure you price your finished product correctly. Of course the goal is to make as much money as possible on the deal, but listing too high can backfire. It can hamper the speed to sell since you’ll likely have to adjust the price down. Therefore, you’ll have a longer period to pay holding costs. Similarly, as your days on market increase, your buyers will become leery of why the property hasn’t sold yet. After all, if it was a great deal someone would’ve bought it earlier right?
We all know that flipping a house can be rewarding and very profitable. However, we also need to know that it’s crucial to consider the many aspects of the whole process, including the speed involved. This way you can profit as much as possible and move forward toward your next successful deal!
Loan Ranger Capital is flexible and can customize a loan that’s perfect for you. No matter if you’re flipping a property or even building one from the ground up, we’re here to financing your next deal!