How To Determine a Construction Budget For Your Flips

budget flip how to Sep 09, 2017

When it comes to construction budgets, you have to start with the end in mind.  You have to ask yourself:

  • is this for a quick flip with maximum profit?
  • is this for a rental property you plan to own?
  • is this a construction project for a friend?

The planned use of the project will most definitely affect the decisions you make in terms of the repairs and renovations you want to tackle, and at what price point the finishes will be for things like paint, flooring, appliances, etc.

The best way to determine a construction budget is to make a complete list of all the anticipated repairs and renovations, and include estimated costs.

This list might include:

  • roof repairs or replacement
  • masonry or siding repairs
  • new paint
  • plumbing
  • lighting fixtures
  • foundation repair
  • etc.

If you haven't already, it is best to develop a rapport with the contractors you use to help get quick estimates on any jobs you yourself cannot accurately put a price on.

Once you have a price for materials and...

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How to Find Houses to Flip

One of the most common questions I get asked is, "How do you find houses to flip?"

In this week's video, host Michael Owen explains his best technique to locate homes to flip.  For a relatively small investment, you can purchase data lists of people behind on their mortgages.  These lists can be custom-ordered to criteria that you are looking for.  You can specify the price range, location, and other factors.

Michael uses DataListLeader.com.  Ziggy at DataListLeader can get you the information you need at a reasonable price.

From there, you need to send out mailers to the people on that list.  It is important to use envelops or postcards that stand out from other mail.  We often use yellow paper, and handwritten addresses on the envelopes.  

It is a good idea to contact the same people 3 times, a few weeks apart.  This has been shown to be more effective than contact 3 times as many people one time.

Contact Ziggy at http://DataListLeader.com...

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The Importance of Doing Your Due Diligence

Importance of Doing Your Due Diligence

Host Michael Owen discusses the importance of doing your due diligence when it comes to flipping houses.

  • Verify the ARV (after repair value)
  • Verify the needed repairs
  • Verify the estimated cost of the repairs
  • wholesalers tend to overestimate ARV and underestimate repairs
  • watch out for contractor liens and tax liens
  • watch out for wholesaler contract fees

While this is not an exhaustive list, missing any one of these details can reduce your potential proft.  Or worse yet, it could put you in a loss position on your flip.

For more information on products and services offered by Michael, please visit us online by clicking here.

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DIY vs Hiring Contractors

 

Do It Yourself

DIY is a way to keep your costs down on your flip.  If you have the skills, and can do good work this might be an avenue to consider.  Bear in mind, the time you spend doing the work yourself is time you aren’t spending on finding a buyer, or finding your next investment property.  You have to remember that your work will probably be placed under close scrutiny by a home inspector.  If the work isn’t good, it will end up costing you money.  Any sub-standard work or issues found will result in the buyer asking for concessions on the sale price, or demanding the work be repaired or redone.

Hire a Contractor

If you are hiring a contractor, be sure to hire someone who is bonded and licensed.  Check out the contractor online for reviews.  Ask the contractor for references of people that he has done work for.  You may find contractors at home improvement stores such as Home Depot or Lowes, buying larger...

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Foreclosure Auctions

 


 

Making Money in Real Estate: The Foreclosure Auction 

One of the most popular ways make money in real estate is to find homes to flip, rent or invest in, is the foreclosure auction.  The auction process is something any real estate investor should make a strong effort to become familiar with.  The best way to learn about the auction is to go attend one in your area and simply watch and learn.

Auctions usually occur at the county level.  Some counties have judicial auctions that occur in a court house.  Some counties have non-judicial auctions that are performed by substitute trustees.  In order to be successful with the auction process, it is very important that you research the houses you are interested in prior to the auction.  Lists can be obtained by the county clerk, or on foreclosure listing websites.

It is very important that you go over your numbers prior to the auction.  You have to know the data on the house before...

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