Building a career buying property, fixing it up and then selling it for a profit can be a lucrative endeavor. However, it is also very competitive. You must make sure you have a good plan in place to be successful. There are some tips and advice that you should consider before you launch yourself into the fix and flip rehab market.
Start With a Good Plan
You should approach a fix and flip career as you would any other business. Create a solid business plan before you begin. Your plan should lay out all the details of your business. Make sure to include financial forecasts, an example budget for a project and detail your expenses. Also, explain your organizational structure and mention your advisors. Do a market analysis since the real estate market will play a major role in your business’ success or failure. Includes as many details as possible. You can use this plan as you seek out investors and partners.
Choose Advisors Carefully
You want advisors who can offer their expertise and assistance when you need it. Choose someone you trust and who is available when you need him or her. Make sure you have a trusted CPA, Realtor, Lawyer and General Contractor that have experience with investment properties. Make sure the advisors you work with support your efforts and want to see you succeed.
Get Financial Support in Place
You cannot really start in this career without good financial backing. You should line up investors or lenders first thing. Your business plan may come in handy here to entice them to put their money behind you.
Be Ready to Delegate
You cannot do everything yourself. It is a bad beginning if you think you can. Have support people lined up to whom you can delegate tasks. Give them smaller things to do that do not really affect the overall value of your project. You can hire people to handle tasks such as mowing and marketing.
Prepare to Move Fast
Always be ready to investigate a property. Have tools ready for those times when you get a lead on a property at the last minute. You need at least a flashlight, a camera, and a measuring tape. Include anything else you usually use when looking at a new property so you can just move when you get a lead.
If you follow this advice, you should have no trouble getting your start in the fix and flip market. Keep in mind that you may want to start part-time and keep your day job for consistent cash flow. Once you have done it for a few years, you can then think about going full time.
