Hard Money Bankers - $5,000 In Work Doesn't Exist When Flipping
I receive a lead every now and then where a potential borrower tells me that a property being sold at 30 cents on the dollar only needs $5,000 to bring it up to full blown renovation value. I can tell you that without seeing the house, you will need a lot more than $5,000 to renovate the property. It is a very dangerous trap to underbid your construction numbers. If you try to talk yourself into a deal by cutting construction numbers, they will come to bite you in the middle of your project. Be realistic with how much work a property needs in order to have it resale at the correct numbers.
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