The Red Flags of Fix and Flips

[Eli Rozansky]

I have been flipping properties for a while now but have stayed away from fix and flips. However, I have come across some properties recently at a good price that I think would only need about 10k to 15k worth of work to really boost the value. Because I am just entering that side of the industry, I was hoping some of you could help me. I would love to here some red flags that pop up when you are deciding if a property would be a good flip and fix or not.

[Gregory Childs]

If you have beening flipping properties for a while - go partner with someone who you have been flipping them to. Tell them you will help them for no fee if they will teach you the "fix" side of the business.

Have them mentor you on a couple of deals and get comfortable. We did over 30 props last years with an average of 27+% return - sounds good eh? However, if you look at our books you'll see some that we made 65% and some that we DIDN'T. Get my drift.

To be fair, overall we had a great year - and the "fix" makes the flip much moire profitable. But as Jon and Dustin can attest, it doesn't come without risk.

TTFN,

Greg