If you’re currently flipping homes, or thinking about getting into it, there are some things you must know and some you must avoid. Here’s Robert Barthelmess with BGI Capital in Miami on why acquisition price and location are such important factors.
"Acquisition price is critical. If you are going into this business, you want to make sure that property is priced right and its leaving you enough cushion to make a profit. Location, is your homework. If you're focusing on a specific market, it's important to understand what's going on in that market. What are the prices? What are the trends? What price can you actually sell that property for? Is it close to public transportation? What adds value to that particular property? So doing your homework on location, is critical," said Barthelmess.
Regarding what you need to avoid, it’s dangerous to buy a property sight unseen and you’d better not forget about your budget.
"There's always surprises in this business, so make sure that when you're doing the scope of your work correctly. When you're creating your budget makes sure that you're leaving enough room for contingency. This safety net saves from any unseen damages or fees-cause you never know what's going to happen," said Barthelmess.
As for who is a candidate to flip homes, it’s not just for the well-established veterans of the market. There’s room for new flippers.
"My best advice if you're planning to get into this business is to do your homework. Make sure you know the area and make sure that you understand your scope of work so that you know exactly what you want to do with that property. If you entering for the very first time, try to team up with an experienced GC or handyman to walk you through the process," said Barthelmess.
Although the process may seem overwhelming, BGI Capital can certainly help
If you are looking to invest in real estate, you can contact Robert Barthelmess with BGI Capital in Miami at (305) 776-5328 or you can head to bgicg.com