Fix & Flip 101
- Home
- Service
- 424-634-0905
- DRE# 02147312
- 424-634-0905
- DRE# 02147312
If you don’t have the cash for repairs and purchasing the home, you’ll need to find a lender. The four options for financing are Hard Money, Private Money, Bank Loans, or partnering with someone.
Contract & work with an experienced agent who has either flipped properties themselves or works for a brokerage with relevant experience. Together, identify and target potential areas for investment.
Once you’ve identified potential properties to flip, calculate the costs associated with repairs and upgrades. Be sure to include carrying costs, such as short-term loan interest, and both selling and buying agent commissions. Calculate these costs in collaboration with the contractor you plan to work with. Depending on your project’s scope, it could take 3-6 months to complete. This timeframe should be considered when determining the After Repair Value (ARV).
Forecasting the After Repair Value (ARV) is crucial. It’s recommended that you do a version of your own ARV estimate and compare it with your agent’s assessment. Add up all potential costs and research homes that have sold in the last 60 days that would be comparable to the property once repairs are complete. Calculate both the lowest and highest potential selling price per square foot. This will help you to your next step in choosing the right property or properties to make your best offer.
After completing the four evaluation steps outlined above, you should feel confident in choosing one or two properties to make your best offer on. Your real estate agent will assist you in securing one of the properties. Once escrow is opened and closed, you can begin your flip. Congratulations on embarking on this exciting journey!
In 2009, the owner of Vistura founded the business with a focus on investing in California income properties and flipping houses. Over the years, the company began receiving inquiries from first-time homebuyers and investors seeking advice. In response, Vistura has opened its doors to share its extensive experience in working with first-time homebuyers, property flippers, Luxury Home Sellers, Dream Home Buyers and income property investors. Our team strives to unlock your VISion to your fuTUre!