I’ve been talking to a lot of people on IG lately about real estate investing, so here are some tips from someone who works with investors everyday!! .....
1. Know your market. What I mean by this is it’s important to get an idea of what is in demand in the location you plan to invest in. You don’t want to buy a $100k property in the hood, add marble floors and a pool an expect to resell it for $500k. It’s still in the hood. The same goes for higher-end markets such as Washington Twp or Northfield. I have seen several investors acquire properties for a reasonable price but do cheap finishes and end up selling their property for lower than properties with nicer finishes. Counter tops, cabinetry, flooring - all of that stuff matters. Your agent (me) will be able to advise you on what is selling locally and what is not.
2. Hire the right contractor. I cannot stress enough how important this is. You want your contractor to be competent and ON TIME!!! Delays or unforeseen errors in construction can result in extra costs and headaches that you do not want.
3. Execute. It’s no secret that the market for flipping homes is saturated with investors. It’s like the Wild Wild West out here - we’ve bid on properties that get 10, 15, sometimes 20 offers. The best thing you can do to combat this is be aggressive. If you wait around too long or hesitate to make a decision on bidding on a property, you will lose it. Make the offer. Yes, it’s a risk. All investments are risks. If you are confident in your team (your agent, your contractors, your lender) then go for it.
Bonus tip: Have an exit strategy. If tips 1-3 go badly for you, you want to know that you will be able to pull as much money out of the deal as possible. Send me a DM if you want to know more about this.