What makes a deal, a deal?

[Katlynn Teague]

Good Afternoon BP,

What makes a deal, a deal?

When flipping a home there are many factors that go into play to decide if a deal is an actual deal. I want to highlight the main 4. 

1) LOCATION- The property needs to be in a sought-after location where people are actively buying. Gentrified neighborhoods are a great place to start as a newbie. Having newly renovated homes and homes that are in need of obvious repairs, you are able to buy deeper and have proven value in the area. 

2) PURCHASE PRICE- As anyone who invests in real estate knows you make your money when you BUY not when you sell. So.. BUY DEEP!

3) ARV- When proving the value of a home you need to have solid comps that are similar to the renovation you plan on completing. These comps need to be pulled within the last 90 days, they sold quickly and did not sit on the market for too long, and be within a 10-20% sq ft range of the subject property. Also, DO NOT OVER REHAB THE COMPS!

4) REHAB- Rehab is a very important part of the deal, make sure you are comfortable with the rehab that needs to be done and have an experienced contractor on your team. When rehabbing a home there are so many things that could happen so make sure you budget for the unforeseen!