Top 5 Must-Haves for Flipping Houses - Know Your Market

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Top 5 Must-Haves for Flipping Houses Know Your Market

Transcript of Top 5 Must-Haves for Flipping Houses - Know Your Market

Page 1: Top 5 Must-Haves for Flipping Houses - Know Your Market

Top 5 Must-Haves for Flipping Houses Know Your Market

Page 2: Top 5 Must-Haves for Flipping Houses - Know Your Market

Knowing your market

is crucial

Page 3: Top 5 Must-Haves for Flipping Houses - Know Your Market

Knowing the market It is simply - the market has gotten more and more competitive and what happens is that people think, they get a little, they get the frenzy mentality, so they start thinking, “I’m going to do all these crazy projects!”

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You want something that’s going to limit your risk

• What I like to do is just go and walk the neighborhood and then compare what I’m going to do to this property to what is on the market currently.• That’s really going to give you a good sense

of what’s selling and what’s not selling.

Page 5: Top 5 Must-Haves for Flipping Houses - Know Your Market

• Talk to the local market agents of that area - Every neighborhood’s got agents that really geographically farm that area and they understand that neighborhood better than maybe I do coming in as a house flipper

• I know that I’m not an expert in every housing market, so I’ve got to pick the brains of people that know the market—that little sub-market—better than I do

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• You really got to think about, you know, what you’re doing in the property. Is it a functional floor plan?

Example:

There’s a flip in the East Bay. They went in and they just did a terrible job. People are almost laughing about how bad the job is.

And it’s kind of sad because they didn’t think things through, they probably went over budget, and they going to lose money.

So, it’s important to really know your market and know what’s going to sell in that neighborhood.

• There is a neighborhood in pleasant hill where it’s a slab foundation, all the foundations are completely, off by two or three inches. And, if you know the neighborhood, you know that’s just normal.

• And you know, you can float the floors and you can fix them, but you know you don’t want to just leave them like that. Because a lot of people don’t want to—this house was completely remodeled, but it had three or four inches difference in the floors.

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“There’s already signs that there’s a little bit of a softening in the market, so right now I’m just—not that I’m not going to buy anymore

but—I just, I’m going to be a little more selective.

I encourage people to be selective and really think out what they’re doing so they don’t have the bad experience of losing fifty or one hundred thousand dollars and they make it a positive experience

Really get involved, know the market, just, you know, don’t go out and buy on a whim. Walk the neighborhood, know the local agents,

and have a good contractor.”

-Beau Eckstein

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Learn more at beaueckstein.com