When it comes to fix and flipping real estate, preparation is key to maximizing profits. At our firm, we’ve been there, done that, and helped countless clients in the fix and flip industry navigate their way to success. With over 30+ years of experience in real estate investing, we understand the challenges new investors face and are dedicated to helping you cut down losses and make the learning process a little easier. Here are three critical factors to consider:

1. Find an Investor-Centric Realtor:

Partnering with a real estate professional who specializes in distressed properties is essential. They should understand your renovation plans, potential after-rehab value, and the ideal selling timeline. Your success hinges on selling quickly at the maximum profit, so their expertise in these areas is crucial.

2. Find a Good Contractor:

There are two types of contractors to partner with:

• Retail Contractors: These contractors work with homeowners and often charge higher rates since they don’t expect repeat business. Their focus is on individual projects, not volume.
• Investor-Centric Contractors: These professionals specialize in working with real estate investors. They offer competitive rates because they rely on consistent work. Their vested interest in completing projects efficiently and on budget ensures that your projects stay on track and avoid costly delays.

We recommend working with an Investor-Centric contractor, as they understand the tight timelines and budget constraints of flipping houses. They can provide accurate cost estimates and project timelines, helping you avoid costly delays and overruns. Remember, the longer a property sits vacant, the more money you lose in carrying costs.

3. Stick to the 65% Rule:

The 65% rule is your golden ticket to profitability.

This means your finished property should be worth at least 65% of your total investment (purchase price + renovation costs). By sticking to this rule, you create a buffer against unforeseen challenges. This conservative approach protects your investment and sets you up for long-term success. Remember, one bad deal can derail your entire flipping career.

Let Us Help You Maximize Your Fix-and-Flip Profits:

Ready to get started?

With over 30+ years of experience in fix-and-flip lending, we specialize in helping real estate investors in Utah, Hawaii, and Washington cut through the red tape, offer industry expertise, and secure the financing you need. We want to help those new to the field learn from our top suggestions to make the learning process a little bit better and less costly. Contact us today for a free consultation and let’s get your next fix and flip underway!

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