All Forum Posts by: Katlynn Teague

Welcome to BP @Craig! This is such an amazing community, you will learn so much for everyone! 

I would love to connect, I am an agent here in Atlanta and specialize in distressed real estate

Good morning BP, are you looking for your first flip? How do you know if a "deal" is actually a deal? 

What do you need to look for, what needs to be considered? 

1. 1) Purchase Price: Acquiring the property at a favorable purchase price is crucial for a successful fix and flip. Look for properties that can be purchased below market value, such as distressed properties, foreclosures, or properties in need of renovation. The lower the purchase price, the higher the potential profit margin.
2. 2) Renovation Costs: Accurately estimating renovation costs is essential to determine the feasibility of a fix and flip deal. Conduct a thorough inspection of the property and obtain quotes from reliable contractors for the necessary repairs and renovations. Ensure that the cost of renovations, including materials and labor, aligns with the expected after-repair value (ARV) of the property.
3. 3) Market Demand: Assess the demand for renovated properties in the target market. Research comparable properties in the area to understand the market value of renovated homes and the potential resale price. Consider factors such as neighborhood desirability, amenities, schools, and proximity to transportation. Understanding the market demand will help determine the potential profitability of the project.
4. 4) Timeframe: Evaluate the expected timeline for completing the renovation and selling the property. Consider holding costs, including mortgage payments, property taxes, insurance, and utilities, during the renovation period. A shorter timeframe from purchase to sale reduces carrying costs and increases overall profitability.
5. 5) Exit Strategy: Have a well-defined exit strategy in place before starting the project. Determine whether the property will be listed on the market for a traditional sale, sold to a wholesaler, or marketed to investors. Assess the best strategy based on market conditions, potential returns, and the investor's goals.
6. 6) Financing and Contingencies: Secure appropriate financing for the project, considering factors such as interest rates, loan terms, and repayment options. It's essential to have contingency plans in place for unexpected issues that may arise during the renovation process. This includes having a financial buffer for unexpected repairs, delays, or changes in market conditions.
7. 7) Experience and Expertise: Evaluate your own experience and expertise in undertaking fix and flip projects. If you're new to this type of investment, consider partnering with experienced professionals or contractors who can provide guidance and ensure a successful outcome. Knowledge of local building codes, permits, and renovation processes is vital for a smooth and profitable fix and flip project.
8. 8) Margin of Profit: Finally, calculate the potential profit margin for the fix and flip deal. Consider all costs, including the purchase price, renovation expenses, holding costs, closing costs, and selling expenses. The profit margin should provide a reasonable return on investment and account for unforeseen circumstances that may affect the project's profitability.

I am a wholesaler in Atlanta! Let's connect! 

The ARV on this one was $365k, this was a pocket listing brought to us by one of the agents we work with!

Investment Info:

Single-family residence wholesale investment.

Sale price: $215,000

This is a beautiful house in Gresham Park, loved the double porch on this one. We were able to help the homeowners move into their dream home closer to their businesses as well as get my buyer into a fantastic deal! Really looking forward to the after on this house!

Good morning BP!

What is the best advice to give someone who wants to start flipping?

Taking the first step to getting over the hurdle into real estate investing can be scary for new people. If you had to give someone advice what would it be? 

I would advise finding your team, finding a deal you feel confident in, and going for it!

 Absolutely, creativity is a MUST! You have to see the vision!

ADUs are a great way to channel more income. 

Good Afternoon BP,

What makes a deal, a deal?

When flipping a home there are many factors that go into play to decide if a deal is an actual deal. I want to highlight the main 4. 

1) LOCATION- The property needs to be in a sought-after location where people are actively buying. Gentrified neighborhoods are a great place to start as a newbie. Having newly renovated homes and homes that are in need of obvious repairs, you are able to buy deeper and have proven value in the area. 

2) PURCHASE PRICE- As anyone who invests in real estate knows you make your money when you BUY not when you sell. So.. BUY DEEP!

3) ARV- When proving the value of a home you need to have solid comps that are similar to the renovation you plan on completing. These comps need to be pulled within the last 90 days, they sold quickly and did not sit on the market for too long, and be within a 10-20% sq ft range of the subject property. Also, DO NOT OVER REHAB THE COMPS!

4) REHAB- Rehab is a very important part of the deal, make sure you are comfortable with the rehab that needs to be done and have an experienced contractor on your team. When rehabbing a home there are so many things that could happen so make sure you budget for the unforeseen! 

 Same here in the Atlanta market! 

It will be fun to watch!

Good Afternoon BP,

I have been keeping my eye on these interest rates and they have seemed to even out. How has this affected your house-flipping business? Have your new listing been getting more action? Are your houses selling quicker than in past months? What do you foresee happening for the rest of this year?