CHAPTER 10 Protect Yourself from Flops
You’ve likely heard of HGTV’s show, “Flip or Flop.” Obviously, the goal is to successfully flip properties (and make a good profit). But the reality is that sometimes flips do turn out to be flops (no money made, or maybe even money lost). The good news is that there are things you can do to lessen the likelihood of a flop.
Pay attention to the market.
Be aware of the average number of days properties sit on the market in the location you’re flipping (particularly if you're doing virtual flips). You and your (virtual) team should also look for trends over longer periods of time (year-over-year). I suggest checking once a month, if not more frequently. Be thorough by getting your research from both local and national resources. Of course, the market can and does change, and isn’t entirely predictable, but by paying close attention, you’ll be better able to act and react accordingly.
Know your neighborhood.
What are the overall trends in your area? Is the population steady, increasing, or decreasing? Check out census.gov to find out. This is important, because you’ll be able to charge more if the area’s growing, but you might have problems if it’s declining. If you live far away, leverage your team's "boots on the ground" local knowledge...in all aspects affecting your flip. Plus, you'll need trusted people to supervise the project since you cannot be
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