Setting accurate deadlines is crucial if you want to become a successful fix and flip investor. If you project your timeline inaccurately and are not able to sell the house before your deadline, your costs can increase due to higher carrying costs and changing market conditions. Carrying costs are the expenses you incur simply by owning a property. For example, utilities or property taxes. Even after the rehab is completed, you’ll need power for things like heating, automated lighting, and a security system. You’ll also be liable for property taxes for the duration of your ownership of the property. Every additional day that goes by past your deadline adds to your expenses when fixing and flipping properties.
In addition, changing market conditions can have a significant impact on your deadline. Your anticipated selling price is based on the real estate market in the area at that specific time. These numbers include the number of homes on the market, the average price of a comparable property in the same area, interest rates on mortgages, and the current state of the economy. If any one of these elements change, it could have an unfavorable impact on the projected selling price.
- Work with an experienced contractor who can finish the renovations on time.
- Work with a dependable local realtor who can sell the home at the projected price.
- Calculate an accurate timeline for your fix and flip project!
Speed is fundamental when it comes to fixing and flipping homes. Investors need quick financing to complete their fix and flips.
Alpha Funding Solutions delivers both CAPITAL & STRATEGIC support to real estate investors, owners, builders and developers for value added projects to maximize leverage, or close on time sensitive and special circumstance transactions.
Apply today and learn more about how Alpha Funding Solutions can help investors save time on their fix-n-flip deals.