STEP 4
RISK VS. REWARD
SPECULATING(FLIPPING) REAL ESTATE HAS MANY REWARDS.WHEN I FIRST GOT IN THE BUSINESS I HAD VISIONS OF MAKING A MILLION DOLLARS THE FIRST YEAR. I HAD NO IDEA OF THE AMOUNT OF WORK IT TOOK JUST TO SEE ONE HOUSE THROUGH CLOSING. IT IS TRUE THAT THERE IS A LOT OF MONEY TO BE EARNED AND EQUITY TO BE GAINED,BUT TAKE INTO CONSIDERATION THE RISK FACTOR.EVERY HOUSE WHEN PURCHASED FOR FLIPPING IS A DIAMOND WAITING TO SHINE. UNFORTUNATELY SOME WILL ALWAYS REMAIN LIKE A PIECE COAL.CHECK AND DOUBLE CHECK YOUR FIGURES.ANTICIPATE FOR THE WORSE.THERE WILL BE HOMES THAT TAKE LONGER TO SELL.THERE WILL BE TIMES THAT UNFORESEEABLE EXPENSES OCCUR.TIMES THAT YOUR HOME IMPROVEMENT TAKEOFF IS OVER BUDGET,WEATHER DELAYS AND ON AND ON.I'M BY NO MEANS TRYING TO DISCOURAGE YOU, I HAVE MADE MY LIVING BY SPECULATING ,HOWEVER THE BEST ADVISE I CAN OFFER IS NOT TO FALL IN LOVE WITH YOUR PRODUCT.IT'S ALL ABOUT THE NUMBERS.IF THEY MAKE SENSE ,THEN YOU HAVE A DEAL,IF NOT THAT'S OK ,THERE WILL BE OTHER HOUSES.BEFORE YOU BEGIN YOUR FIRST FLIP I ENCOURAGE YOU TO DO THE RESEARCH .
HAPPY FLIPPING,RON MOLCHO...MANAGING BROKER @ AMERICAN HOMES OF SI
Comments(0)