If you have ever wondered what the day of a real estate investor involved in rehabbing and flipping property was like, then this article will walk you through the life of a real property investor and shed light on how they check out property they’re interested in; and why they use rehab analyzer software to speed up their assessment of the viability of potential properties to buy. You’re going to be fascinated to discover just how effectively rehab analyzer software can work for you when you learn from an insider. So let’s go take a closer look!.
Let’s call our real estate investor Bill. Bill wants to buy a property in a neighborhood—let’s call this neighborhood Flipping Street. Now, before touching the property he decides to drive around Flipping Street to look at other properties. His mission is to find out what property was selling for in the neighborhood. He then finds out from the Multiple Listing Service (MLS) that other homes in the area were selling for between $60,000 and $75,000. A quick mental calculation tells our Bill that he might have to invest $20,000 on renovations and after all is done there could be a substantial profit to be made. With this in mind, he figures that this deal warrants a visit to the home that’s up for sale.
A drive around Flipping Street suggests that the neighborhood is in far better condition than he’d expected. There weren’t many “For Sale” signs in the area; the lawns were well manicured; there were no junky cars or boats around; by and large it was a neighborhood of homeowners who were proud of their properties and took good care of them. An inspection of the house in question indicates the usual upgrades and renovations are needed. Bill notes the house needs a good lick of paint both inside and out. It also needs a new roof, kitchen, flooring, lighting and several other minor bits and pieces. After inspecting the house and its neighborhood, Bill uses a rehab analyzer to quickly and easily analyze rehab opportunities to make profit projections. The analyzer indicates that the profit he stands to make from this property is between $20,000 and $28,000 which he feels is a good return on investment for a small deal such as this. He quickly makes an offer a little above the asking price of $22,000 just in case other investors are also bidding on the property, and sure enough, he is notified the following day that his offer had been accepted and that they would close the deal in 30 days.
The more you dither after identifying a lucrative property to flip, the more likely you are to lose a golden opportunity to another bidder. I wonder if you’ve realized how smart our Bill was as he went about purchasing this piece of real estate for flipping. He did his research by checking out the neighborhood and the going rates for property in that neighborhood. He then took a look at the property in question to see what it looked liked and what needed fixing, AND what it was going to cost to rehab. He ran his findings through rehab analyzer software to get an estimate on repairs and whatnot. And voila, he made an offer the minute he found out that there was money to be made. Bill is testament to the fact that until you’ve input the information to hand into the rehab analyzer software, you’ll have no idea within a reasonable degree of accuracy whether or not the property you’re interested in buying is a sensible purchase based on your investment criteria. If you’re the kind of person that wants to turn a quick profit in real estate flipping, then Bill’s simple but sound strategy would be just what you’re looking for.