Fix and Flip Property | Hard Money Business Loans

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3 Tips for Evaluating the Worth of a Fix and
Flip Property
2625 East 14 St. Suite 209 Brooklyn, NY, United
States 11235 info_at_expresscapitalfinancing.com
www.expresscapitalfinancing.com
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3 Tips for Evaluating the Worth of a Fix and
Flip Property
Purchasing a property with the intent to renovate
and sell can be a lucrative business. However,
sometimes its difficult to determine if a
property is worth your time and effort. If youre
wanting to know when to purchase a fix and flip
properties, here are three helpful tips.
1. Consider Hiring a Professional
The last thing you want to happen is to lose
money on a property. Sometimes its hard to know
if a property will be worthwhile. One of the
best ways to know that you wont overbid on a
property is to hire a professional. While this
is the most expensive option, you are more likely
to ensure that a property is purchased at the
right price and that the repairs will be done
quickly and efficiently. Cost, speed,
thoroughness and accuracy are important when
fixing and flipping a property. While hiring a
professional is costly, it guarantees the other
factors are achieved.
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2. Do-It-Yourself
If youre looking to cut costs while fixing and
flipping properties, doing the job yourself is a
good option. Fixing and flipping a property
involves a variety of costs including the
purchase price, renovation costs, carrying costs
and marketing costs. The purchase price is
obviously what you pay for the property and
renovation costs include all materials and labor
necessary to repair and refresh the property.
Carrying costs are the expenses required from
the time you acquire the property until you sell
it. And finally, marketing costs include any real
estate agent and marketing fees to sell the
property. If you opt to handle all these costs on
your own, be prepared to spend the required time
and money.
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3. Use the 70 Rule of Thumb Method

• Evaluating the value of a property can be
  complicated. However, there is a 70 rule of
  thumb method recommended when dealing with fix
  and flip properties. The rule involves the
  after-repair value of a property minus the
  repair costs. A simple example is if a property
  is worth
• 200,000 after 25,000 in repairs, you shouldnt
  pay more than 115,000 to acquire the property.
  While this is only a suggested rule, its a good
  method to use if youre looking to quickly
  acquire properties. This method may lack
  thoroughness compared with the other methods
  however, speed and accuracy are achieved.

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When evaluating the worth of a fix and flip
property, use these three tips to ensure the
right amount of cost, speed, exactness, and
diligence.
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2625 East 14 St. Suite 209 Brooklyn, NY, United
States 11235 info_at_expresscapitalfinancing.com
www.expresscapitalfinancing.com