Million Dollar Fix and Flip
Million dollar and multi-million-dollar home fix-and-flip projects are unlike smaller flips for many reasons. It isn’t just the quality of work needed in one type of home versus the other, nor is it that you need to understand the market niche regarding one commercial real estate over the other. What is different is the time, energy, money, and preparation needed to handle such large projects. Therefore, in order to be successful at million dollar fix and flips there are a few things you may want to consider before you begin.
3Ps to Success
Planning, process, and people are the “3Ps” of effective preparation for successfully completing these huge deals. Use them as a foundation for your business transactions to solve some of the issues that can come up along the way. Save yourself time and frustration with these simple steps.
An effective plan is essential. You need to know where you want to go, how you want to get there, and how long you plan on investing in the project. List the type of deals you are looking for and what type of profit you need to make. Add which neighborhoods you like, how much renovation is your team able to do, and how long can you afford to keep this commercial real estate project on the books. Spell out your goals and include facts and figures.
Many flippers have missed out on opportunities because they didn’t have a process in place when chances for big deals came their way. Get your infrastructure established before finding that special deal. Don’t lose it because your groundwork was shaky or part was missing. Trust is the bottom line here.
- Who will fund? It’s essential to have a financial base in place before you find a property. Get a working relationship with private lenders.
- Who will appraise? Use an appraiser that takes the time to run appropriate comps.
- Who will do the work? You need a trusted contractor. A competent contractor understands the value of speed, as well as being on the property, and supervising the actual workers.
- Who will sell the finished project? Find a reliable real agent that you trust to be on your side.
Network, network, network. Tell everyone you know about your plan to flip a large commercial real estate property. You never know who may be able to help you reach your goal by introducing you to the perfect deal, so don’t deny them the chance to help you, just tell everyone.