Market is shifting - important tip for new fix and flip purchase

Market is shifting - important tip for new fix and flip purchase

Hey, my friend, we all know the market is shifting. So here is a very important tip for a new purchase for fix and flip. Welcome to Wealthy Wednesday.

So this happened before, multiple times when we were buying a property for fix and flip. Like a year back, a year and a half back. Now say for example we buy a property for $250,000 and we add the repair cost and we have the after-repair value, the ARV, Supposes after checking the comps, I came up with after repair value of $380,000 and I'll tell you, in every single case, similar case, we will end up listing and selling  that property for another 20k or 30k more. And it happened all the time because the market was growing. Now the very important tip is when you are purchasing a property right now for fix and flip, be very conservative. So forget about that 20k or 30k up you may sell for 20k or 30k below because the market is adjusting. So it depends on the neighborhood, depend on the square feet of the house and also depending on the repair you are doing, the quality of repair or the style of the repair you are doing. My suggestion will be conservative, do not overpay.

You will see many properties coming in the market soon. Save your money because a lot of new investors or non-experienced investors will be out or you are a new investor but you are partnered with another experienced investor, hold on to your money, Buy but don't overpay for any property. You don't want to lose out on that profit because that's the profit after 4 months, 5 months when you sell the property, if it comes down, you're going to lose all the profit. So that's my tip today. Be conservative when you are buying a new property for investment.

Hopefully, this information is going to help you make your fix and flip business successful. My name is Shawn Bhakta from Remax Presidential,  South Florida Home Finder Team, and I'm glad to help.

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