Fargo Capital specializes in Fix & Flip Loans with a variety of loan programs designed to meet the challenges of an ever-changing market.
Even with rising interest rates in the Home Buyers’ Market, Fix & Flips can be profitable. The key to success is not biting off more than you can handle.
Our experienced Team can help you determine the viability of the project and the funding needs.
Do your homework. Don’t speculate!
Develop a checklist of the projected expenses associated with the property you are thinking of purchasing. That budget should also include the cost of the loan, one to two mortgage payments and the cost of repairs or improvements. Many Flippers make the mistake of trying to make a large profit off one property when you should be looking at the profit of several fix and flips combined.
When selecting a property as your “Fix and Flip”, properties in need of roofing, HVAC or any issues that may require a Building Permit are better left to the Fix and Flipper with deep pockets. Major landscape improvements or tree removals are a drain on time and money. The goal of any quick flip is to be able to list it for sale with 21 days of taking possession.
Our Quick Flip Guide!
Your success will depend on how aggressively you handle the needed improvements. Make a plan and adhere to it!
Unless you have your own crew, many improvements should be delegated to experienced sub-contractors. Develop a relationship with them prior to the close of escrow. Some may even agree to perform the work and wait until you sell the property to be paid.
- Prior to the close of escrow, gain access to measure and photograph kitchen and bathroom cabinets that may need to be replaced or updated.
- Order replacement cabinets, counter tops and vanities for delivery on day 3 or 4 of taking possession.
The day after you take possession of the house, demolition of cabinets and carpet removal should begin.
By day, 3 be ready to paint the interior of the house. Be sure to use neutral colors and stay away from flat white wall colors.
Day 4 kitchen bathroom cabinet and vanity installations begin.
By day 8, flooring installation begins. Laminate floor covering is a top seller but can be expensive. Apartment grade carpeting is fairly inexpensive and gives you more money from your budget for tile or laminate flooring in the bathrooms or kitchen.
By now you should be able to see where we are going with this. Don’t second guess anything. Make a plan. work your plan.
Extras like wider baseboards, Crown Molding, updated switch and plug in covers all add a finished look.
Hollow core doors that are replaced by 6 panel doors are quick improvements that are appealing to most Buyers.
We recommend: houseflippingspreadsheet.com as a valuable planning and budget tool.