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236
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Tracy Thielman
  • Lender
  • Albermarle, NC
90
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236
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How Much Weight Do You Give the Exit When Buying a Flip?

Tracy Thielman
  • Lender
  • Albermarle, NC
Posted

I've been thinking about how easy it is to become focused on getting a property at a good purchase price while overlooking the eventual exit.

When evaluating a flip, how early do you think about the eventual buyer?

Do you analyze the likely resale market before making the offer, or primarily focus on acquisition and rehab numbers first?

Most Popular Reply

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Evan Polaski#5 Multi-Family and Apartment Investing Contributor
  • Cincinnati, OH
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Evan Polaski#5 Multi-Family and Apartment Investing Contributor
  • Cincinnati, OH
Replied

I am hesitant to respond, sort of in the same vein as Ed O's comment, and not really sure if this is real question or what.

But, assuming it is a real question, can you explain to me how one would evaluate a flip at all without assessing the exit? I can understand a rental not caring too much about exit value to some degree, but a flip?!?!?!

Assuming your question is real: it is really the first factor, followed within seconds by rehab and potential purchase price. Flips are very quite simple and at the highest level only require three numbers, so if you are not even thinking about 1/3 of the required inputs, then I have some great products to sell you...

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