House flippers, wholesalers, and buy-and-hold investors all start their next projects the same way for the most part. The first thing they need is a project. Once they locate a property, all three need to understand what it will take to transform the property into a money maker.
That’s where things get interesting…
As a real estate investor, you have to:
- Inspect the house to see if it is even worth buying (or wholesaling);
- Make a list of what kind of repairs are needed;
- Figure out a price for those repairs by getting bids, using your experience, etc.; and
- Determine the maximum amount you would be willing to pay for the property based on the repairs.
This can be like an art form. Most of the time, two investors will come to two different amounts. Time can also be a problem. Good deals don’t stay on the market long – especially in the ‘hedge fund shopping spree’ era.
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JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.