Closing a deal in property business does matter. It is the result of the hard work you put through. If you cannot close the deal then it is likely hard to say that you have succeed in your real estate investing career. Flipping house now is majorly considered as one of the most promising investing strategy in property industry.
This strategy is quite straightforward. Closing your first rehab deal is a goal you might after. Or, you might as well after a goal to grow your business. Either way, you still need to execute the right steps to achieve those goals.
For new investors, closing the first rehab is important so that they will be more motivated to make more promising deals and become more professional in handling this business. Here are some tips achieve your goals in closing the first rehab property:
- Remember that real estate investing is a about numbers game rather than emotions. Thus, it is highly recommended to look for promising and profitable deals. It is important to find the right and most suitable property you can work with house flipping. There are many ways to find the deals. You can contact wholesalers or distressed property owners to find out if there is any property that will be suitable to your liking. Attending club meetings or local networking between real estate investors is also promising for you to find ideal deals of rehab properties.
- Calculate everything started from the value of the property as well as the cost estimation of repairs. In finding rehab deal, you need to try looking for discount. It is not embarrassing thing in house flipping deal. You will have to calculate the total of capital you need to spend. Therefore, it is highly recommended to make calculation with patient. There is no need to rush the process because the most important thing is to calculate everything precisely and thoroughly. Remember not to leave small details from your calculation.
- Next thing to do is to figure out the value of the property after rehab. To help you decide, you may need to look into the most recent comparable sales. Thing to consider in deciding the value is the amenities, since it impact the value the most. However, the information n regarding to comparable sales in the market is not an absolute guide you should follow religiously. Market is prone to change from time to time. Thus, your comparable sales in the market may change in the next few months even before you are able to close the deals. Comparing the sales in the market is important to avoid making your property overprice or underprice.
- The last thing to do is making the right offer. This is quite challenging and nerve-wrecking for most investors. There is high chance of being rejected even if you think you have made the fairest offer. You can make the offer based on what you want and if it doesn’t work, you need to prepare the alternative.