Flip That House

Rehabbing

There is no doubt about the fact that you need to turn over (flip) a property in a reasonable amount of time to make some investments work. You should be extremely adamant about this with the contractors that you hire. If you don’t have the authority to be in control of the situation when it comes to contractors, you could find yourself losing out of thousands in profit. You also need to have the work completed for a reasonable price.

There are some contractors who make a living out of price gouging unwitting investors. Not all contractors are evil. However, until you get yourself a good crew, you need to know how to protect yourself from the less desirable ones.

You will need to learn how to keep your contractors in order. You also need to know how to keep your rehab expenses below the thresholds that you set and know where to set them. This is an especially helpful skill in a case where every dollar counts and time is of the utmost importance. For instance, as in the case of wholesaling the property.

By taking charge and knowing how to make binding agreements with the contractors you use, you will save yourself a lot of grief during the rehab process.

Appraisals

By taking the time to learn something about the appraisal process yourself, you can determine if it is worth your time and money to hire an appraiser. In other words, if you have the skills to evaluate a home based on your own merit, you will be able to eliminate properties that aren’t worth taking the time to evaluate further.

Recently, there have been a few new rules established for getting appraisals on residential property. It is important that you fully understand what those changes are and how they can affect you. Hiring your own appraiser might seem like the best way to go but there are times when you are not allowed to do so. You need to learn when those times are and how to make sure you are following the proper appraisal procedures and guidelines.

It is important to know what the value of a property will be after the rehab is completed.  You will need to know how to identify which comps are appropriate for each investment property. This helps you accurately determine the after rehab value for that property.

Courtesy of  Real Estate Power Investor