The facts are that far too many people are having trouble getting to the finish line when doing a flip these days. Granted, this does not apply to everyone, but it does apply to a large number of flippers.
Some say the sky is falling, others blame the President, the weather, the Realtors or Wholesaler that sold it to them, but what really matters is a market correction is going to happen, and you need to be diligent.
During the end of a cycle, it is important to buy more conservatively, the buying formulas used 6 months (or six years ago) are outdated. Buyer confidence is not what it was a short time ago, therefore you have to allow for a more conservative end buyer. Be sure to always verify ALL of the relevant comparable sales in the area that match your subject property. Never take the data provided to you by anyone else as the only data to consider. It is not uncommon for relevant sales to be overlooked in hopes of painting rosy outlook for a buyer, don’t get caught short her.
A savvy flipper or buyer, in general, insists on a full title search and warranty deed with title insurance that has NO EXCEPTIONS. I cover what I mean by the exception in the audio portion of the episode, be sure to catch that part.
Also, insist on a municipal lien search, study the results and insist that the closing company clear issues the minute they are discovered, long before closing. Sometimes it can take several weeks to get government agencies and utilities to clear lien issues, get ahead of the curve.
Avoid flips inside an HOA if possible, delays caused during rehab, gated communities make it harder to show, harder to hold an open house.
When fixing up a house, always, always, always use a licensed contractor who was recommended by at least two different people that you know and respect. Verify the contractor’s license with the local regulatory boards.
Ask for reissue credit on title insurance when you sell, this helps put more money back in your pocket when you turn a property around quickly.
I PACKED this episode full of great tips to help you make money and avoid losing money, thanks in advance for listening.