Nobody likes to screw up.
And worse yet, nobody likes to screw up publicly while at the same time, losing other people’s money.
That money may be family money, friend’s money, private lender money, bank money…or your own money.
Justifiably so, this tends to be one of the biggest fears most new investors…but it doesn’t have to be.
The best way to NOT screw up a flip is to make sure your analysis of the deal is spot on.
So fear not new investors, read below and worry no more…
Learn How to Analyze the Deal
Learning how to analyze the deal is one of the most important things you need to know when you’re flipping houses. This includes knowing exactly what you can sell the property for (known as ARV), what you’re renovation costs are and of course what you can buy it for.
If you haven’t heard, ARV is the single most important number in house flipping – as all the other numbers stem from this one.
But as a new investor, you may be tempted to just do your first deal just to get it under your belt. You may think you can underestimate a few cost of repairs here, or overestimate what you can sell the property for on your ARV there, and everything will turn out just fine.
To be successful doing this, you really have to follow rules, systems and formulas. These will keep you out of trouble and safeguard your business from catastrophic losses.
No “Adjustable Spreadsheets”
Adjustable mortgages are fine, (although personally <a target=_blank title="The Ultimate Guide …read more