Pro Advice: 7 Things You Should Ask Before You Fix and Flip Arizona Homes
This is the third
installment of a four-part series, in which we interview licensed realtor and
expert in fix and flip Arizona properties,
Jenna Jacques. During the discussion, Ms. Jacques revealed seven questions
every would-be flipper should ask himself before procuring a rehab project.
installment of a four-part series, in which we interview licensed realtor and
expert in fix and flip Arizona properties,
Jenna Jacques. During the discussion, Ms. Jacques revealed seven questions
every would-be flipper should ask himself before procuring a rehab project.
1. Do you know the
area? There are all sorts of things a home rehabber should know about the
territory he works in. The price of similar homes that have recently sold in
the area are only part of the equation. You have to know the schools, what the
traffic is like, if the neighborhood is expecting any major changes, and other
seemingly minute details.
area? There are all sorts of things a home rehabber should know about the
territory he works in. The price of similar homes that have recently sold in
the area are only part of the equation. You have to know the schools, what the
traffic is like, if the neighborhood is expecting any major changes, and other
seemingly minute details.
2. Do you know the
market? The fix and flip Arizona
market is ever-changing, and even neighborhoods and subdivisions follow their
own trends. You have to be able to make accurate predictions on what the
property will be worth once the renovations are complete.
market? The fix and flip Arizona
market is ever-changing, and even neighborhoods and subdivisions follow their
own trends. You have to be able to make accurate predictions on what the
property will be worth once the renovations are complete.
3. Do you have a
cushion? Whether you’re taking out a hard money loan or saving up your own
cash, you must set aside funds for unexpected expenses. Sometimes necessary
repairs don’t become apparent until the renovation is underway, and other times
they can prove to be far more costly than the budget allows for.
cushion? Whether you’re taking out a hard money loan or saving up your own
cash, you must set aside funds for unexpected expenses. Sometimes necessary
repairs don’t become apparent until the renovation is underway, and other times
they can prove to be far more costly than the budget allows for.
4. Do you understand
the holding time? When you fix and flip Arizona properties, having a solid timeline in mind is essential.
Knowing how long you have to complete a project, and keeping everything on
schedule, can make a huge difference in the amount of profit you see.
the holding time? When you fix and flip Arizona properties, having a solid timeline in mind is essential.
Knowing how long you have to complete a project, and keeping everything on
schedule, can make a huge difference in the amount of profit you see.
5. Are you aware of
the industry? From bidding, through buying, renovating, and selling, you’ll
need to be in contact with numerous professionals. You also have to have a keen
understanding of the process, and be familiar with trends.
the industry? From bidding, through buying, renovating, and selling, you’ll
need to be in contact with numerous professionals. You also have to have a keen
understanding of the process, and be familiar with trends.
6. Do you know a
realtor that works in the industry? Some flippers try to sell a home on
their own, which can be a particularly big challenge when it comes to marketing
and negotiating with buyers. It’s important to partner up with a realtor, but
not just anyone will do. If you partner with someone who works in the industry
already, you’ll have instant access to a huge knowledge base. You’ll also be
working with someone who is highly familiar with your goals, and knows how to
flip a home fast, for maximum profit.
realtor that works in the industry? Some flippers try to sell a home on
their own, which can be a particularly big challenge when it comes to marketing
and negotiating with buyers. It’s important to partner up with a realtor, but
not just anyone will do. If you partner with someone who works in the industry
already, you’ll have instant access to a huge knowledge base. You’ll also be
working with someone who is highly familiar with your goals, and knows how to
flip a home fast, for maximum profit.
7. Who is going to do
the work for you? While some start-ups do all the renovations
independently, there are numerous professionals you may need to call on at some
point to get an expert job done fast. Electricians, plumbers, contractors,
painters, and other helpers are beneficial, but you’ll need to establish
relationships with trustworthy people before you begin.
the work for you? While some start-ups do all the renovations
independently, there are numerous professionals you may need to call on at some
point to get an expert job done fast. Electricians, plumbers, contractors,
painters, and other helpers are beneficial, but you’ll need to establish
relationships with trustworthy people before you begin.
Arm Yourself with the Knowledge Necessary to Be Successful when You Fix and
Flip Arizona Homes
Throughout the interview, Ms. Jacques repeatedly hit home
the importance of research. You can’t rely on others to provide accurate
information on a neighborhood or particular home. In order to be truly
successful, you’ll need to do the legwork when it comes to determining costs,
timelines, values, and necessary repairs. When she began in the industry, she
swore off mentor programs and gimmicks, and dove into research headfirst on her
own. “Any person on the street may tell you one thing, but at the end of the
day, you have to do the research for yourself and understand what exactly
you’re doing.”
the importance of research. You can’t rely on others to provide accurate
information on a neighborhood or particular home. In order to be truly
successful, you’ll need to do the legwork when it comes to determining costs,
timelines, values, and necessary repairs. When she began in the industry, she
swore off mentor programs and gimmicks, and dove into research headfirst on her
own. “Any person on the street may tell you one thing, but at the end of the
day, you have to do the research for yourself and understand what exactly
you’re doing.”
Avoid the common pitfalls of fix and flip Arizona properties by evaluating
each one independently.
Ms. Jacques cautions people who want to fix and flip Arizona properties, “Don’t just buy a house to buy
it!” Know the stats on each home, and act on real information, not impulse. She
also noted, “There are always ‘deals’ out there,” but having a solid
comprehension of the risk involved and taking that into account when performing
the initial evaluation of a property is an absolute must. Even though the home
rehab enthusiast often receives tips from others as to which homes are hot for
flipping, she’s discovered over time that those rarely live up to expectations.
“My best deals are the ones I find myself,” she added, but Ms. Jacques also has
a system for evaluating each home before she dives into a project, and with all
the knowledge she’s amassed over the years, her selections and renovations
can’t help but be fruitful.
it!” Know the stats on each home, and act on real information, not impulse. She
also noted, “There are always ‘deals’ out there,” but having a solid
comprehension of the risk involved and taking that into account when performing
the initial evaluation of a property is an absolute must. Even though the home
rehab enthusiast often receives tips from others as to which homes are hot for
flipping, she’s discovered over time that those rarely live up to expectations.
“My best deals are the ones I find myself,” she added, but Ms. Jacques also has
a system for evaluating each home before she dives into a project, and with all
the knowledge she’s amassed over the years, her selections and renovations
can’t help but be fruitful.
For more information on Jenna
Jacques, see her
reviews on Zillow, or visit her
Facebook page or her personal website, JennaJacquesHomes.com.
Jacques, see her
reviews on Zillow, or visit her
Facebook page or her personal website, JennaJacquesHomes.com.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Hard Money, Private Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
dennis@level4funding.com
www.Level4Funding.com
Arizona Hard Money, Private Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
dennis@level4funding.com
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.
Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.