If you are an investor who flips or rehabs properties in Philadelphia and surrounding area, you’re probably thinking about how to make more money and grow your investing business.
While fixing and flipping can be a great way to make money and quit your job to escape the rat race, we find that investors often think about making fix-and-flip money in a “backwards” way.
Here’s how many investors think
Many investors find a property, acquire it, then fix it up so it’s beautiful, and hope to sell it for the highest possible price. Along the way, they save money where they can (sometimes by getting great deals, and other times by cutting corners or grinding down contractors).
Problem is, when it comes time to sell the house, they discover two things:
#1. They fixed the property in a way that they think is amazing but the costs are higher than a buyer might want to pay for the property.
#2. Many investors are often overly optimistic about how much they can sell a house for (and they inflate their ROI in their heads but discover a harsh reality when selling).
Of course you can make good money fixing and flipping but many investors make these two mistakes and it takes A LOT of money out of their pocket.
Here’s the weird way that investors should be thinking
Instead of trying to make a massive windfall on one property (while also creating the home of your dreams, regardless of whether a buyer wants to own the house of your dreams), think BIGGER…
… yes, BIGGER! Here’s what we mean:
Instead of trying to hit the jackpot on one property, think of your fix and flip loans Philadelphia as part of a long-term plan.
Acquire a property, fix it up the way a buyer would want to buy it (and do so quickly), sell it for a fair price but price it to sell quickly, and then do it again. And again. And again. Use fix and flip loans Philadelphia along the way to help you do more deals and bigger deals.
See The Difference?
One investor tries to hit the jackpot on one deal and burns a lot of bridges to do it, but also hurts their chances of making money by not building a house that sells quickly.
The other investor knows that time is money so they choose speed and efficiency over creating the most beautiful house of their dreams. They fix and flip a house that a buyer would want to buy, and then they do it again.
Fix and flip loans Philadelphia are one of the tools to make this happen quickly: lenders who specialize in these loans can help you build a plan that keeps you on track, removes emotion from the rehab, and makes sure that you are moving forward with speed and efficiency in mind… because when you use this approach you’ll grow a bigger, more profitable flipping business with a long-term view.