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FACT:
90% of all millionaires in the US
made their fortunes from Real Estate. |
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Marketing the home
You now have a valuable asset
in beautiful condition!
Time to sell! This is
really stage 4, or the "FLIP IT!" moment. Yes, you "make
your money when you buy", but that REALLY only holds true
when you REALIZE your profit. So let's talk about MARKETING
THE HOME in order to achieve the highest sale price
possible. This is when you have to think like a RETAIL
buyer. You are exposing all your ideas and expressions,
which says a lot about you, to the whole world. Can you take
the fact that someone looking for a new home comes into your
freshly renovated property and says "oh ... look at that! Is
that supposed to be that color? I don't like the tile in
here. Mmmm, the bathroom needs some work. Have you finished
updating this property? When will it be finished?" and so
on. I personally have wanted to strangle some of the
potential buyers who have critiqued MY design and MY
handiwork!! Why don't they go and look at the p.o.s. for
sale down the street! How DARE they criticize me! I'll bet
their house is a slum anyway!
The fact is ..... GET OVER
IT. You only need ONE buyer. Yes ONE! So think of it as a
numbers game. Figure you'll need maybe 20 people to look at
it before you get a decent offer. If 10 people have
differing ideas about what they see and it's not for them,
then that only leaves 9 more people who'll say the same and
you'll probably get a buyer after that! Now, it's still a
business so be business-like, courteous and don't lose your
cool! Or at least, lose your cool about uncooperative buyers
with some buddies over a cold one! Frankly, if you've taken
some advice over tasteful rehabbing, then you'll be OK. I
promise you someone will like it and want to turn it into
their first or next home.
to be continued .....
Top 10 best decisions for a PROFITABLE
flip:
-
Get a mentor or partner who has DONE IT! Learn in the
REAL WORLD! Don't try to reinvent the wheel - there are
plenty of experienced people who want you to succeed!
-
Make FAST decisions on deals!
Top investors decide to buy a DEAL within MINUTES! You
SNOOZE you LOSE!
-
Get a small bank as a lender.
Yes, it takes effort but a $500K line of credit may only
cost you 1 point and rate 1 point over prime. This is MUCH
BETTER than a hard money loan in the long term.
-
Build a POWER TEAM -
especially labor/contractors, lender, realtor, title
company who you can call on for daily help if necessary.
-
Know your competition!
You may think that DEAL you bought will sell for $150K and
make you $25K profit ....... but WHY is that nice house next
door for sale at $130K?
-
Be Neutral, but not
BLAND! Appeal to the majority of potential buyers
with tasteful, neutral colors - but DON'T paint
everything off-white!! Use strong accent colors
SPARINGLY!
-
GIT'R'DONE! Or
rather, get the construction completed within 3-4
weeks MAX!! Even if it takes a team of laborers
all day and night! This way, you'll still have lots of
enthusiasm at the end of the project and be EXCITED to
get it on the market.
-
PRICE IT RIGHT! The
best flips are a high quality finish out with a list
price 2-3% below your competition. DON'T GET GREEDY!!
-
Get it listed on the MLS
- don't forget a yard sign, flyers, ads. Use a local
realtor to sell as well as buy! Build these costs into
your spreadsheet.
-
Be flexible with buyers!
If the buyer loves the home but wants you to pay all
closing costs, don't just be insulted! See if you can go
50/50 or add a little onto the sales price to cover some
of their closing costs. Your realtor can always help
here!
FSBO or
Realtor?
