Culled from real estate investor stories, here are 11 tips for your house flipping success.
Nerdwords, an online marketing agency exclusively for real estate investors, has compiled a list of 11 tips for your success. Some of the tips came from investor stories featured on their podcast which covers everything pertaining to online marketing for real estate investors. To read the full article, click here.
Don’t max out on rehab projects – make a distinction between necessary and excessive repairs when you do fix and flip. Repair costs are dents in your profit, so stick to remodeling work that is essential for improving ARV
Don’t go DIY to save money – you are an entrepreneur and you have to start thinking like one. If the task can be completed at a rate that is lower than your average per hour pay, value your time and give the task to someone else.
Hire services that deal exclusively with real estate investors – go for companies like AdWords Nerds, Carrot, or InvestorFuse. They have years of experience in the field and their products, services, and resources are tailor-made for investors.
Recruit employees based on values – new skills can be passed on to any employee who is willing to learn, but you can’t change people’s values. Hire team members whose values match yours to avoid HR issues.
Do a proper vetting on course and event organizers – some of the people who try to sell you a course or networking event at your local REI club might be in it only for the money, so always double-check these offers.
Use the 2%, the 50%, and the 70% rule of thumb – as a shortcut for estimating whether to commit to a deal. Don’t make a final decision based solely on these rules, but keep them in mind when qualifying leads.
Triangulate to decide when you lack understanding – select at least three offers (for anything) and compare them relative to one another. Even if you don’t have a clue, triangulation can help you make a better decision.
Employ the multiple close model – don’t expect to always close your favorite type of deal. Make your real estate investing company flexible and able to close wholesale, flips, or retail deals if needed.
Create a revocable living trust – because it’s better to have one than to skip. If you manage them properly, trusts can help you get a tax break and distribute assets more freely.
Diversify your investment portfolio – as a risk mitigation strategy. Property is one of the safest investment assets, but you can try new markets and type of deals to keep your wealth during a crisis.
Master marketing to get more deals – there are always deals in the market, and marketing is the way to get them. It’s an essential part of real estate investing and your future depends on it.