Ever wondered what the steps in doing a fix and flip consist of? Or where to even begin? Here’s a quick guide to start.
1. Find the right property!
This can be tough – Find a vacant property or a property that needs work. Run some quick numbers before you make an offer. For instance, say the house is listed for $110,000 and the After Repair Value (ARV) is $190,000, the house needs about $15,000 worth of work. That will leave you with $65,000 of profit, remember to take into consideration CLOSING COST! You will have some wiggle room because often times things come up and you might end up spending more than anticipated fixing up the property. Also, you should have a realtor make sure that your numbers are correct. If you don’t have a realtor on your team, contact us! We have a very knowledgeable agent on our team who can help you!
2. Get the property under contract!
After you are sure of your numbers, time to SUBMIT AN OFFER! If you submit a proof of funds with your offer, it’ll help ensure you get your property under contract. If you need a “Proof of Funds”, here is the link to our website: https://www.legacyfrontlinecapital.com/proof-of-funds/. Fill in the information regarding your property, when you complete the page, you will receive an email with the proof of funds!
3. Funding!
If your offer is accepted, this is where the “FUN” begins! Find a PRIVATE MONEY LENDER… hint hint, contact us, Legacy Frontline Capital. We will make sure that you get the funds you need to close on this property! There is a lot that goes into this, you will receive a checklist of items that need to be completed. Give us a call! (719) 569-0464! We are a private money lender and broker and it’d be an honor to walk you through this process and educate you!
4. WORK!
After you have closed on your property, now it’s time to work! If you have a General Contractor, it’ll make this a lot easier. Rather than hiring different people to do different jobs. Remember, digging into a distressed house you are bound to find more issues than you expected, which is okay when you have some wiggle room with the money. Take into consideration when remodeling, people like a modern look. Make the house look nice! Once the property is completed, it’s time to….
5. List the property!
You have two options here, you can list with a realtor or for sale by owner. If you can sell the property by owner, great! You’ll save some money by not paying commission fees, although, sometimes it can be tough selling your property on your own. Reach out to us if you need help selling the property!
6. Do it again!
Now that you got the feel of the “rehabbing life”, find some more properties and let’s make money together!
Thank you for taking the time to read! If you have any questions, please give us a call! (719) 569-0464