My First Flip! Advice Please

[Adrian Carlos]

Hello Everyone

I am new to Real Estate Investing. Let me tell you about my first flip. I got this house under contract for 12K. Its a good area. Well for a house this cheap there must be something wrong with it right? Well their is and alot. First off it has a good flat roof. The electrical has been stripped completely it needs brand new electrical. It needs Air Conditioning. Tile all across the house expect the rooms. New Windows their old and broken. Kitchen needs work also.

Now for the home.

1500 sq ft 3 beedrooms 2 bathrooms
it also has a small 1 bedroom and bathroom in the back so its two homes in one.

So its going to be a huge project.

How can I find out how much I can sell the house after its fixed?

[Rob Caldwell]

Here's how to buy a house:

1. After you get the appointment with the seller to look at the house, pull the property record card (tax record) to see the specifics of the house.

2. Pull the comps. You want like area, size, style, year built, etc. Do not use REO's, F/C's, discount sales. You want retail sales in good shape. Possibly even renovations of the same style home you are looking at.

3. Drive by the subject 30 minutes before the appointment to get a feel for what you are looking at. Then drive the comps. Pick three of the best comps that are in good shape compared to your subject.

4. Average the $ per square foot of the comps and use that average to determine the ARV of your subject.

5. BEFORE YOU EVER MEET THE SELLER OR SEE THE HOUSE YOU SHOULD ALREADY KNOW WHAT THE ARV IS.

6. Meet with the seller. Remember this: "It's not the house. It's the seller". If you can't bond and rapport with the seller, you will never buy the house.

7. Determine repairs.

8. Multiply the discount you are going to make on the house. Then subtract the repairs. i.e. $100K - 50% - $20K = $30K.

9. Make your offer to the seller.

I hope this helps and I am sorry you did not know this prior to buying the house.