If you don’t know how to analyze a flip, you’re not alone. There are many factors that come into play when deciding whether or not a deal is worth pursuing, especially if you’re on a time crunch.
Today, I was given a lead from a wholesaler. The contingency? Only 24 hours to decide whether or not he’s in or out of the deal. It’s a perfect excuse for me to show new investors how to underwrite and analyze a real estate deal. This five step process doesn’t take a ton of time and can help any flipper or BRRRR-er decide quickly if they have a deal on their hands.
The most important piece of advice in this episode: know your comps and know your area. The more you understand why people are paying the price they’re paying for local comps, the better you can design a house to fit the price point and secure an above-market offer!