Begin With the End in Sight- Profit!

If you’ve been staying up late at night watching home shows about “flipping” houses for piles of cash and have decided you’re ready to give it a shot, I’ve got some advice for you- "wait". I don’t mean that you shouldn’t follow through, but you should take a few moments (maybe even days or weeks) to think first! That is, if you want to actually make money at it.

I work with homebuyers and sellers who are players in this business and I’ve come to realize that making a profit flipping homes is learned skill. Of course there are those that get such a good bargain that it’s hard to not make money, but most of the time it’s not that easy. It’s a business venture based on hard numbers and budgets. To maximize your profits you need to know what your goals are and have a roadmap to get there.

Gary Keller, author of The Millionaire Real Estate Investor, says, “When you ‘buy it right’ you make your money going in.”

Kevin Myers agrees in his book Buy It, Fix It Sell It… Profit. He writes, “You, the investor, are in control of every aspect of the transaction from start to finish. You will know going into a deal what it will cost to fix up the property and for how much the property will sell for in the end. Best of all, you will know exactly what your profit will be, because you have included it in your buying decision.”

That’s the idea and it’s not easy. To “buy it right” you have to have an intimate knowledge of home values and what it costs you, both in labor and materials, to prepare a home for sale. To accomplish this, the best real estate investors have a network of people at hand. From Realtors and mortgage lenders to painters and carpenters it takes a host of trusted team members to make the venture a success. So, like I said, it’s a learned skill.

If you’ve read Stephen Covey’s famous 7 Habits of Highly Effective People you should be familiar with what he calls “Begin With the End in Mind”. It’s the same principle that I’m talking about, except he’s applying it more broadly.

Covey says, “How different our lives are when we really know what is deeply important to us, and, keeping that picture in mind, we manage ourselves each day to be and to do what really matters most.”

When applied to real estate investing or any type of business, it means that we have clear goals and endpoints in mind when we start the venture. Sounds like good advice though not as simple as it sounds.

Ready to Jump In?
Whether you’re an experienced real estate investor or just starting out, please let me know what you’re looking for so I can be on your team and contact you when I come across a property that may fit the bill. Also, when your project is complete, I can develop a strategic marketing plan to sell it for the most money in the shortest amount of time.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.