Wish Me Luck..... Here I Go!
I just purchased a bank owned house and will assume ownership of it in late July.
I have partnered with an architect who is amazing when it comes to design/craftsmanship. His friend and he are doing all the work and we will be splitting the profits (50/50, 50 to me and 50 to him and his friend.
It looks like by a very conservative judgment we would walk away with 20k profit before capital gains, etc. I know this probably isn’t much; however, we are doing everything (overboard) in this house to insure it’s priced far below its value and has exceptional quality.
How do you guy’s measure success on your first flip? Is it an amount of money? Gained knowledge?
How much of a risk am I taking with that amount of profit I conservatively estimated?
(Purchase price 122k, estimated money in 33k, estimated sales price 175k)
Put me in your prayers!
If you have substantial equity in a property and decent credit, I would suggest you look into a HELOC for your rehab- no fees and works just like a credit card/checking account, often with interest only payments.
Most mortgage brokers will not charge you fees unless they close a loan, except for the appraisal- and some even cover that.
As soon as you close on the property is the time to start making repairs- there are lots of things you can do with little or no money while you wait on additional financing. Time is literally money in this business as holding costs can eat you alive, so waste no time getting started!
Chris