- Loan Amount: $255,000
- Rate: 11.9%
- Loan Term: 6 Months
- Property Type: Single Family Residential
- Loan Type: Fix and Flip
Time and time again, our borrower has shown that they are able to go into a home, renovate, and get out of it fast by choosing smart and affordable updates, and selling at fair market value. By knowing your market you can find out the fair price of a home in turnkey condition, see what you would need to do for your property to bring it up to that value, and then create an action plan to bring your property up to market standards.
When working on a fix and flip you’ll want to consider how much work may be needed on a property to bring its value up. Most of the time, there isn’t a large need for drastic changes and a property may only need some new flooring, redo the kitchen and give the place a fresh coat of paint, while others may need a complete overhaul. Once you have an idea of what is needed to be done you should get a budget together and get quotes for the fix ups that will be needed. Keep in mind you may also want to budget for potential disasters that could happen.
Once you are done with the renovations to the home, it is time to price fairly. Find your old numbers for how you would price the home after it had been renovated and the comparisons you had. Have those comparisons sold? If so, for how much? How are other nearby properties priced? You want to price your property similarly to homes that have similar features, number of rooms and bathrooms, and square footage. During this time, you may feel like you are just waiting for a call and an offer on the home, but it might not be a bad idea to search for your next flip.