It’s been a relatively tough real estate market for rehabbers/flippers for some time now, and with the home-buyer tax credit getting ready to expire at the end of this week, it’s likely only going to get tougher.
That said, for smart rehabbers who know how to buy right, rehab right, and sell right, there is still plenty of opportunity to make money in this market. My business is proof of this — over our past 10 rehab projects, our average DOM (days-on-market) before our first offer was under 10, and our average sale price was 97% of our list price. Given that the average DOM in my area is over 100 and average sales price somewhere around 85% of original list price, that’s not too shabby.
Do I have a secret? Nope. Just common sense and the will-power to stick to doing what I know is right and not doing what I know will be harmful to my business.
With the new homeowner tax credit getting ready to expire, and with the relatively large number of buyers that have been shopping the past few months likely to go away, I thought now would be a good time to recap an article that I wrote last year, “The 8 Rules of Flipping in 2009.”
I’ve updated a couple of these rules for 2010, but for the most part, the rules are the same. If you’re a house flipper (or plan to be in the near future), here are some tips that you’ll hopefully find very useful.
Know the 8 Rules for Flipping here: BiggerPockets
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