1. Assuming a property will sell for the same price per square foot as others in the neighborhood. Running an analysis goes a bit more in depth than that. Sometimes newcomers forget to consider features of properties that have recently sold in an area, such as pools or larger lots. Even the overall size of the property can impact the price per square foot. You really need to drill down the data of the properties you’re comparing to identify what your property is likely to sell for; don’t just look at overall prices per square foot in the neighborhood.
2. Using speculation to determine if a deal is worthwhile now. “It’s an up-and-coming neighborhood,” you’ve likely heard. What exactly does that mean now? Are there jobs nearby now? Is the location safe now? Are people moving to the area now? Don’t bet on a deal purely because a new employer is eying moving in or another developer is working nearby. When you’re doing rehabs, you’re typically looking at a shorter timeline, and the things that may add value to the property may not be in place by the time you need to sell. If you’re working a fix-and-hold strategy, it can be even more dangerous to make a bet based on something you think will happen a couple years down the line.
3. Thinking their reputation doesn’t matter. Doing good business does matter, for lots of reasons. Making repairs properly will earn you a good reputation, which can help you move properties faster. Having a good track record and networking with people can make it easier to find properties and get Fix and Flip Loans in Arizona too.
4. Paying early or late. Your relationship with your contractors is everything, and how you pay them has an undeniable impact on their work. Some try to sweeten the pot and get contractors to shift their priorities by paying for a job before it’s done. That can leave you with an unfinished job. Equally, some are slow to pay, and that kills the relationship with the contractor. Check the work right after it’s finished and pay promptly to ensure quality of work and build long-term relationships.
The biggest mistakes people make usually involve going on gut feelings and not following a system that works. You’ll be more successful if you’re working with hard numbers you can see here and now and are mindful of how you spend your Fix and Flip Loans in Arizona to maximize the impact each dollar has.
One of the things that’s great about working with dedicated Fix and Flip Loans in Arizona is that they’re not usually based on your credit. They’re based on your ability to find good deals and manage projects. Knowing these mistakes, and avoiding them in your own projects, will help you plan better and be more profitable. It’s also what lenders like to see when you approach them for funding. Keep this in mind as you strategize your next purchase, and you’ll not only have an easier time getting funding, but will grow your wealth quicker.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.