Basic Flipping Process

[Leon Cumberbatch]

Good day,

I am soon to make my first deal and the one thing I am still trying to figure out is process most experience investors use, when they have targeted a potential Rehab.

After you have located the potential flip and before making an offer, how do you really know what you are getting into. Do you bring in someone to appraise the property, then bring a contractor to asses it? I am just puzzled how make a good estimate on the cost of the repairs before having the property assessed.  So please enlighten me on the steps you use from start to finish.

Thank you in advance,

[Mindy Jensen]

This is a great question, @Leon Cumberbatch. 

Have you checked out The Book on Flipping Houses by J. Scott? He gives some amazing advice.

Partnering with a more experienced flipper is a great way to learn the ropes. A good deal can turn into a not-good deal quickly, just by underestimating the rehab costs. Having a contractor go through with you is a great way to get a handle on what needs to be done, but finding one who will go through it with you before it is under contract can be tough. Heck, finding one who will go through it with you AFTER it is under contract can be tough, too.

What sort of work does it need? How extensive is the remodel and how far below market value or ARV (after repair value) can you get the property for?