One mistake that can put a flip in a bad position fast is releasing too much rehab money before the work is completed. I think it’s important to structure contractor payments around clearly defined stages of the project instead of putting a large amount of capital out upfront. That can help you: ...
One mistake I see investors make is estimating the rehab themselves and waiting until after closing to get real contractor numbers. A $50K rehab can turn into $70K–$80K pretty quickly once labor, materials, permits, and unexpected repairs are factored in. Before closing, I’d want: • At least 2 de...
If you’re a CPA, accountant, tax professional, real estate agent, or financial professional, you probably already have business owners in your network who eventually need access to capital. You don’t have to become a lender or try to figure out funding yourself. That’s where a referral partnershi...
One thing I see investors underestimate is how quickly unexpected costs can eat into the budget on a flip. A rehab might need more work than expected, materials can cost more, or the project may simply take longer than planned. That’s why I think having access to additional capital before you act...
We do something in our property management company that I know some landlords and PMs disagree with: We require an application before we schedule a showing. I've gotten some pushback on that recently, and I understand the argument. We're intentionally adding friction at the top of the funnel, and...
A lot of business owners don’t come right out and say, “I need funding.” Sometimes the signs show up first. Maybe they’re delaying a new hire, putting off equipment purchases, turning down larger jobs, using personal credit to cover business expenses, or struggling to keep enough cash available f...
A lot of investors run the numbers assuming the property will sell quickly once the rehab is finished. But what happens if it sits for another 30, 60, or even 90 days? That’s when interest, utilities, insurance, taxes and other carrying costs can start eating into the profit. Before getting into ...
One thing that can turn a profitable flip into a headache fast is rehab creep. A few extra upgrades here, a contractor change there, material prices come in higher than expected and suddenly the original rehab budget looks completely different. That’s why experienced flippers usually have a clear...
One thing I think every investor should know before closing on a flip is exactly how they plan to get out of the deal. Selling at your target price may be Plan A, but what happens if the property sits longer than expected, the market changes, or the rehab costs more than projected? Having a Plan ...
One mistake I see investors make is putting so much capital into the purchase and initial rehab that there’s very little liquidity left when something unexpected happens. A contractor goes over budget. Materials cost more than expected. The project takes longer. Or another good deal comes up befo...
One mistake I see investors make is trying to use one type of financing for every part of a flip. The acquisition, rehab, materials, carrying costs, and unexpected expenses may all be better handled with different types of capital. Depending on your situation, options can include 0% APR business ...
$18,300 in annual rent on a $97,000 Rochester duplex. What do you actually keep? I went back through some of our Rochester multifamily listings. Three examples show why I want to see more than the asking price and monthly rent before deciding whether something looks interesting. I’m leaving the a...
After reading Rich Dad Poor Dad—the book that seems to lead every young investor into real estate—I decided to take a leap of faith when everyone else said I was crazy. I bought a house on Gregory Street in Rochester's South Wedge. The neighborhood was not like it is today. Blight and crime were ...