If you’re getting involved in fix and flip investments, you’ve chosen a lucrative, satisfying way to make money: You’ll get to see homes restored to their prime while reaping the financial benefits of your efforts. To make the most out of this type of investing, keep the following tips in mind.
According to Investopedia’s James McWhinney, one of the biggest mistakes people make with fix and flip investing is expecting a quick buck with little effort. The truth is that this type of investing requires a great deal of patience: Finding a suitable property, purchasing it, renovating it, and connecting with the right buyer are all time-consuming on their own, let alone taken together. Be patient, and don’t try to rush through the process.
Find a Good Realtor
A good realtor will be one of your most important allies in the fix and flip business. The right realtor will combine extensive knowledge of a given market with the ability to find properties that match your specific criteria. Another perk is that a well-connected real estate agent may be able to give you a jump start on pursuing properties before they are listed to the general public.
Monitor the Market
Realtors go a long way, but to make your fix and flip operation thrive, you should also monitor the market yourself. Over time, you’ll be able to learn about the best times to buy, sell, and so on in a given area.
Stock Up on Contractors
Finding one good contractor is a nice start. But you should strive to find multiple contractors that are reliable, fair, and effective in their work. For instance, relying on a single contractor can present a problem if you need to quickly renovate a home: Should your sole contractor be busy with other work, your project may be delayed, hurting your profits.
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