A fix and flip usually take two or three months to a year, depending on how much work a property needs.
Not only is there the closing of the property which some investors can do quickly; usually faster than a retail buyer or someone who is using a real estate agent. There is also the time needed for the title agent to get everything coordinated with closing.
After getting permits and approval, we also need to get subcontractors. Then we can start the actual rehab.
Rehab can take two weeks if it is just a simple cosmetic turnover rehab. If there is much to be done then it may take 30 to 90 days to complete. It is also possible to take longer than that depending on the situation. Nevertheless, the more skilled the fix and flipper is, the shorter the rehab will take.
Once the rehab is done, then comes the marketing. This all depends on the kind of market.
Some fix and flipper use staging, this is when you put accents and decorations to help buyers see the potential of the property. Though in some markets they would want to see the property empty so as not to influence their decision in buying.
If there is a buyer and it locks up the property as soon as it is listed. It usually takes 30 to 45 days for a bank to issue a standard mortgage to an owner-occupant, even if they are pre-approved. The new owner would also want to do inspections, have it appraised and the banks needed to have all this information.
To find out more about this, you can visit our website at: https://www.effortlesshomebuyers.com/
Real estate is a people business, and you, as our client, are what’s most important to us.
Whether you’re trying to sell, buy, rent, or repair your credit so that you can do any of those, real estate can be a confusing, overwhelming, and disappointing endeavor.
However, it really doesn’t have to be painful. When you have the right education and honest people on your team, real estate becomes something that’s working for you.
We’re here to simplify your life, so you can spend less time worrying about real estate and more time living. As experienced real estate professionals, we buy and sell property across the nation with the primary intent of creating positive outcomes for people in predicaments.
Our job is to make your life easier, and because we are investors, we have the flexibility to offer you multiple solutions when buying and selling property.
Find out more at
https://titanwealthgroup.com/
Listen to our Podcast:
https://thestoragestud.podbean.com/e/61-what-profit-do-fix-and-flippers-typically-make/
--------------------------------------------
Hi, this is Steven with Effortless Home Buyers. At Effortless Home Buyers we work with both sellers as well as a large investor group. So we often get the question, how long does a fix and flip even take? Because often we have investors that may not have invested in a fix and flip before, or we have sellers that haven't worked with an investor before. So this question is, in fix and flip it typically takes a couple months why I say that is because not only is there the closing of property which investors were able to close rather quickly quicker than what a typical retail buyer or an owner occupants, someone using a real estate agent is able to do, but there is time that has to be done with the title agent and getting everything coordinated with closing. So from the moment that a purchase agreement signed a fix and flip has whatever the time it takes to close, which could be anywhere from seven days to sixty days.
And then from there, we have to get a permits, we have to get approval, we have to get subcontractors with their bids accepted. We have to buy supplies and then we have to conduct the actual rehab. Now, most of the rehabs that we do are in the light to mid range, but however, we do some very heavy rehab sometime. So rehab can take as little as two weeks if it's just a kind of turnover, cosmetic rehab, or we're doing paints, cleaning, maybe updating some finishes here and there, doing some light landscaping, that sort of thing. As soon as we start diving into the more bread and butter of rehabs, you're going to be looking at anywhere from 30 to 90 days to complete a rehab. If it's something that's a larger project, where in additions being built, where gutting a home. It can take longer than that.
The more skilled they fix and flipper is the shorter that a rehab and take because they can coordinate, and it's almost like an intricate dance amongst these subcontractors where people will be able to do things at the same time, but they won't be stepping over each other and getting in the way and having to redo things. You don't want to be you know, putting in brand new floors and then painting just to find out that some paint got out on your brand new floors. So once the property has been rehabbed, then there is also the marketing and staging portion of things, depending on the market, depending on the strategy of that fix and flipper, they may be putting a what's called a staging scenario in place. So staging is when you put furniture and accents and decorations around the house to help potential buyers see the potential of the property, see how the property looks once it's all lived in. Now, staging can be helpful in some markets and it helps make a rather empty space and make it look like a home. In some other markets though, people like to see it where it's empty, be able to paint their own canvas and not have influence their decisions with when they buy the property.
Staging can take a little bit of time but typically not too long, that can be probably anywhere from a week to two weeks to have it fully staged and ready to go, you take your photography and then you're going to be listing on the market. When you're listening on the market, depending on how hot the market is, it can take a rather short period of time, or it can take a longer period of time. But even if it's a very hot market where somebody already pre-approved with their loan and locks up the property, as soon as it's listed, banks usually take a little bit of time to be able to close. We typically factor in about 30 to 45 days for a bank to be able to issue a standard mortgage to an owner-occupant, even if they're already pre-approved. Now sometimes we're delightfully surprised with how quick it can go, but looking at 30 or 45 days is pretty typical.
And it can often go longer than that as well, because that owner, the potential owner, the new owner, they're going to be wanting to do things like inspections. They're going to want to have it appraised, and the bank going to need to have all this information in order to do their things. And then there's closing and scheduling the coordination, there's coordinating and scheduling the closing. So when we look at how long does it take to fix and flip a property, we're typically going to be expecting at least three months, if not all the way up to a year, depending on how much work a property means. If a property is something that needs that large gut rehab, then a year could be the problems in closing the property, rehab the property, marketing the property and selling property to the end buyer.
No comments:
Post a Comment