Now that you and your Realtor have identified your target market, it is time to start your search for that perfect prospect. Chances are you will be able to eliminate the majority of listings without leaving the comfort of your Realtor’s office, leaving you with just a few real contenders.
It’s now time to have your Realtor set up showings. Spend time taking a mental inventory of the needed renovations as this will help you further narrow the field. The goal here is to eliminate all but one property. Revisit the property; bring your camera and notebook this time to take detailed notes of the improvements needed. Ask your Realtor what renovations he/she believes will realize the best return on your investment, chances are they have seen your competition.
Ok, play time is over and it’s time to set aside those illusions of grandeur, in other words it is time to develop a business plan with a budget. One of the biggest mistakes I believe novice flippers make is overestimating one’s abilities and underestimating the amount of time needed to complete the project. Let’s be honest… the majority of us can’t draw a straight line let alone cut one. Please seek the advice of a contractor or someone well versed in building trades when developing your business plan.
When all is said and done and the numbers appear to make sense to you ask the advice of a few more people you trust; the old adage “Two heads are better than one”. Next time we will look at the offer phase, if there is ever a time to enlist a Realtor this would be it.
Merry Christmas
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