What are the first steps I need to be implementing for a first flip? I'm in Shelbyville Indiana if anyone knows anything about flipping or investing near me, maybe we can get in touch?
Should I find financing first, before I find a deal? Or should I find the deal first to have a better chance of qualifying?
When I find a deal, how do I price the rehab cost? I should write down all of the problems on an SOW found during the inspections, and have contractors price each problem I have written down?
Thanks for giving me the time of your day to read and reply,,, I'm looking forward to seeing some great advice.
Have you determined for yourself what constitutes a deal?
First step is being able to recognize what's a deal and more importantly, what's not.
In order to do so you need to work in reverse.
1. What is the ARV (after repair value) for a similar, rehabbed property in that neighborhood?
2. What is the repair cost (yes, getting several contractors to price the work is a start to learning to price these yourself).
3. How much do you need to make on this deal?
Now you know your max offer on the property.
Let's pretend that the ARV is 200,000, rehab costs are 50,000 and your minimum profit is 20,0000. This makes your max offer 130,000 (this is before you calculate cost of sale, holding costs, cost of acquisition). Maybe that makes your max offer closer to 115,000.
A great way to get the hang of this is practice establishing your max offer on as many properties you can manage to go see.
If you share your results here, I'm sure you'll get plenty of useful feedback.
As far as your original question, find deals first, then financing.
Check out the BiggerPockets Flipping book:
@Zach Shrader , that book is very helpful.
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