Fix and Flip changes

[Rio Nance]

Hello everyone I am wondering how everyone is doing with their fix and flip projects. What is working for you now? 

What have you had to change?

What are the trends you are noticing in your market?

[Lateefah Mathews]

Hey @Rio Nance you’re casting a pretty wide net with your question, since it's not specific to an area or city, but I’ll share based on what I'm seeing. First, I’m not really seeing enough cushion in certain popular areas for investors to realistically hit a 30% profit margin.

Another key change is making sure your contractor actually sticks to completion deadlines...why, because of how extremely tedious permit inspectors are getting in some cities, which can slow progress in and of itself.

Also, when you’re ready to list, make sure your priced reasonably. Buyers don’t care if you shelled out more on the rehab, if you’re priced too high, you’ll end up sitting on the market way longer than you want, driving up holding costs.

Lastly if your buying on market, REO or Corporate sellers are dominating and not as willing to negotiate as owners would. That said, be prepared to act fast on non REOs, or shell out a little more than usual and bring an inspector during tours. I'm noticing a lot of homes with foundation issues. I can keep going but these are a few of the basics...