Spread the Net Wide!!!

[Aaron Cunningham]

In the last 11 years of flipping properties and training new investors in the Pacific Northwest Markets (Seattle, Tacoma, Spokane, and N. Idaho), I have noticed an interesting investor trend. The trend that I am thinking of is "buying in an area we like" or "a type of home we love", and while I am not opposed to that general line of thinking I am concerned that it may not be the best way to make money in the market. My general counsel to those that ask is "buy in an area where you can make money", don't spend so much time worrying about wether it's the neighborhood that you love, or the style of home your intrigued by. The money is green on either side of the railroad tracks, trust me, when the numbers show up in your bank account it doesn't matter what type of home or architecture created them.

Here is what I am most concerned about when flipping homes.

1. Profit Margin (will I make enough money)

2. Age of Home (older homes can take a lot more time and money)

3. Is the AREA selling? (if the neighborhood sells then do it. I'm not planning on living there, so what do I care if it's a 50k or 500k house)

4. Can I drive there in a day? (As long as I can line Sub-Contractors out on the job, I don't care if it's in my backyard or 200 miles away. For me it's all about Margin)