Today we’re going to finish up our Flipping 101 series and talk about managing the rehab and selling the property. Obviously, these quick episodes offer some actionable steps and basic information, but they’re not in-depth. If you really want to study a subject, I suggest you search for more detailed past episodes or even sign up for one-on-one coaching or a training program.
I feel like I could spend a month-long series talking about managing a rehab because it really is one of my strengths.
The most important aspect of managing a rehab is actually being there. If you’re starting out, you might want to visit every day. Problems pop up every day and you want to always be aware of what’s going on and address every issue immediately. You also need to make sure that you’re in control. That doesn’t mean that you have to be bossy or mean, just that you work with your contractor and know that this is your project. Make sure that you have a timeline of what you expect from your contractor, so they know that they’re meeting your expectations. There should be milestones along the way to motivate them and make sure they’re always on track.
Show up, have a plan, be in charge.
Now, as far as selling the property, that can be as simple as using the realtor you used to buy a property to sell it. It’s a good business practice and a realtor wants to be hired to handle both sales. You’re not obligated to do that, but it builds good relationships and that realtor will want to sell you more properties in the future. You can also sell the property yourself: put it on craigslist, mention it at your local RIA, put it on the MLS, put up a sign before you’re finished with the rehab. These are all valid ways to sell your property, but the fastest and best way to sell is to make sure that the ARV you used when you bought the property is still accurate. You can go up a little to give yourself room to negotiate, or go down a little to get people interested and create a bidding war. Either way, you should discuss these strategies with your realtor if you’re using one. And don’t be afraid to adjust your price if it’s not getting any traction.