When to market first flip?!

Question

Hello, I am a buy and hold investor currently have a portfolio of 13 units made up of 4 SFH, 2 Duplexes, one 4 unit, and 1 condo. I am in the middle of my first flip, bought for $35k renovation for another $35k, all in $70k. I believe the property will sell between $125k - $140k. My question is when do most people start to list the property for sale? I am intending to post on Zillow and Craigslist for 2 weeks myself once the home in 100% done. When should I start the marketing process, this home was a total gut job and will be "brand new" once complete. Any thoughts from other flippers will be GREATLY appreciated,

Thank you,

--Dan

Thank  you,

--Dan

Robert Campbell · Answer

My approach is a little different than the other two responses so far, but I am only on my second flip and this approach may change.  On the last one, I put a For Sale By Owner sign in the front yard when we were about 75% done.  Hardwood floors were sanded / stained / poly'ed, kitchen and bathroom done, and importantly electrical / mechanical / plumbing up to code according to the list that came from a city inspection.

I put the sign up because I figured that serious buyers would be out looking for a couple of weeks, and I might have an opportunity to talk with potential buyers and get feedback on my suggested price.  Buyers a month later, when it is completely finished, might be a different group by then.

What occurred:

Purchase Price: 17k

Total Rehab cost:11k

Original Expected List Price: 60k

What wasn't done:Another 10k - Exterior paint, full yard / landscaping / fencing cleanup, basement cleanup, window dressings, and a number of small items

Another investor who had multiple rentals in that area saw the sign, walked the house, and we quickly negotiated a 45k as-is / walk away and take your tools price.  As a result I made 45k - 28k = 17k more quickly, without realtor commissions, with less risk / total committed dollars into the project, and purchased the next rehab project a couple of weeks later.

In short I agree its probably best to finish everything and then market the property, but I wanted to offer this example.  My current project just reached about 80% complete with a purchase price of 30k, 30k rehab, and expected sale price 120k+ and I just put the sign out yesterday - Perhaps I will learn not to do it that way.

J Scott · Answer

We start marketing once the house is finished, inspected and staged.

Letitia Harris · Answer

When finished.  I showed my last flip to someone who said he had friends who'd buy it "as is" but didn't come through.  Walking him through with all the work in progress wasn't ideal.  Nope, I vote when finished, for highest dollar.  I also lightly stage my flips too.

Nick C. · Answer

After reading @Robert Campbell above, I guess it depends on your price point as well. The higher the price, the more finished I think the product should be.

J Scott · Answer

In this business, you generally have to choose between "quickest" and "most profitable" -- which one is more important to you?

Daniel DeMarco · Answer

Thank you for your thoughts,  I am just looking for the quickest and most profitable strategy, which I am sure we all are.

Nick C. · Answer

We always wait until it is completely finished. You don't get a 2nd chance to make a 1st impression. Most buyers don't have the imagination to see the finished product before it's finished. Paint touch ups, landscaping, fixtures, everything needs to be tip top.

When to market first flip?!

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