Realty411 - Your Source for Real Estate Investment Information CashFlow Express - Featuring HGTV's Flip or Flop! | Page 21

Getting Started as a Rehabber, pg. 19

to determine the Maximum
Allowable Offer (also referred to as MAO) you can
make. There are two elements that are at the heart
of most of the risk in this
business model, these elements are the cost of repair
(your rehab budget) and
the After Repaired Value
(ARV). In determining your
rehab budget, it is strongly
recommended that you
utilize a competent Contractor to help you establish
your budget and reserves
necessary. When trying to
determine your ARV, your
Real Estate Professional can
be a great asset and will be
able to provide you with
properties that are currently
on the market and that have
closed as a reference to compare
your property against.

Five Land Trust Stories, pg. 15

before

~~~~~ 5 ~~~~~

after

Be Prepared for
Some Stiff
Competition
With the popularity of this
business model and the expectations of large investment returns comes some
very fierce competition;
this comes from a number of sources including
contractors who have the
skill and manpower readily
available, seasoned Investors that have developed
an efficient and repeatable
business model. Even new
investors with no prior
track record of success
can beat you to the closing table.
You may be wondering why a
novice would be your competition. In some cases, they may
not have prepared properly to
accurately determine a safe offer
price considering the elements
mentioned above and may offer
a higher price you can’t compete
with. However, the most influential competition you will ever
encounter is yourself! As a Performance Coach, this is an area
that I deal with frequently. For
some novice investors, they can
get caught up in over-analyzing
deals to the point where they
may never get around to actually making offers or when they
do, it may have taken them so
long that the property has been
already snatched up by someone
else; this can be very discouraging.
Learn What a Good
Deal Looks Like
As part of your skills development plan, it will be essential
for you to master the process
of knowing how to evaluate
property candidates before you
starting making offers. Property
rehabbing and flipping can be a
very rewar [