Q: I am looking for a partner for a fix and flip property that I have under contract. I spoke to someone who is interested but expects to make a lot more money than I think is possible given the comps and the estimated rehab cost. What do you think? Jimmy, Kearny, NJ A: Jimmy, you should thank this guy for showing interest and then run as fast as you can from him. If you and this person are not on the same page with respect to the facts of the fix and flip deal you have then you should not partner with him. Flipping houses is not rocket science, it’s based on basic math that primarily revolves on a […]
continue reading Q: Gerald, I have a fix and flip house under contract. Should I start the rehab now in the middle of winter? Larry, Old Tappan, NJ A: Almost all challenges you face in life are situational. Whether you should start doing the rehab right now in the middle of winter depends on several factors including your cost of capital, your daily holding costs, the availability of electrical power at the property and labor availability. If your cost of capital and/or holding costs are high, it may make sense to get started on the rehab immediately because every day you wait is more money out of your pocket. Dilapidated properties often don’t have electrical power and doing the rehab and keeping […]
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