Evaluating Properties - Tip 4 - Condition
This is an area of evaluating a property that most people really miss the boat on. In general we have found there are 3 levels of quality that a property is normally sold as. There is the high end retail condition which is completed by your experienced flippers that are full time investors. These are the gorgeous, flawless top of the market properties you see when looking at the pictures. The next step down is the 'lived in' condition. This condition can range from a mediocre renovation to a property that is very nice but currently lived in. Below that is the investor condition which ranges between a shell to a house falling apart. It is very important to determine your ability to renovate a property and how that correlates to the end value. If you have never done a flip before, there is a good chance you will get less than the top end price of the market and closer to the 'lived in' condition price. I see a lot of people believe that on their first flip they will be able to execute on the project with so much precision that they will get the same numbers that the experienced full time flipper is getting. Be realistic with the product you are putting out so you don't find yourself in a position where you could potentially lose money. Those three types of conditions are good guidelines to see exactly what you are evaluating your subject property against.
Ian Walsh215.839.3271
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