Discover 5 essential fix and flip tips for beginners to help you analyze numbers, build a team, and secure fast financing for maximum profits.
TL;DR: First-time fix and flip investors can lower risks and maximize profits by running accurate numbers, choosing cosmetic rehabs, assembling a strong team, managing project timelines tightly, and pre-qualifying for financing early.
Starting your first fix and flip project? These five proven strategies will help you maximize profits and minimize risks in your real estate investment journey.
Apply the 70% rule (70% of ARV minus rehab costs) and add a 20% contingency buffer to protect profits.
Target homes needing cosmetic updates rather than major structural overhauls in high-demand areas.
Build your core team, agent, contractor, attorney, and lender, before searching for deals.
Prequalify for fix and flip financing early to act quickly when profitable properties appear.
What is the 70% rule in fix and flip investing? The 70% rule suggests that investors should never pay more than 70% of a property's after-repair value (ARV) minus the estimated renovation costs.
How long does a typical fix and flip project take? A typical fix and flip project takes 4 to 6 months total, which includes 2-4 weeks for acquisition, 8-12 weeks for renovation, and 4-8 weeks from listing to closing.
What financing options does Bridgemen Capital offer for fix and flips? Bridgemen Capital offers 24-48 hour fast approvals, up to 90% Loan-to-Cost (LTC), 100% rehab financing with controlled draws, interest-only payments during renovation, and no prepayment penalties.