Blood, sweat and tears…
And many sleepless nights. That’s what you’ll go through in this industry. After all- you want to make the big bucks so you do what the majority won’t do…
Work hard and for free- BEFORE you get paid….and with NO GUARANTEES of success.
So you put in the work. Day by day, brick by brick, permit after permit, and overcome all obstacles in your project.
You dealt with the contractors, architects, engineers, city planning department….
dealt with squatters, break-ins, lenders, jv partners, …
….picked the right colors, the right appliances, added wood lamanent flooring, restucco interior/exterior, made the house congruent throughout, changed the layout and even added a new roof and a white wooden fence.
Then one day…
You’re done. You’re rehab is complete.
BOOM! -Now it’s time to sell it and make your $$$!
If you followed our formula in Flipping Your Thoughts On Flipping you already know what the end sales price will be around.
However a few months have passed and the market may have shifted. So it’s time to double check comps and see what similar homes (if any) have sold for in the area in the last few months to get an idea
WATCH THIS VIDEO for a refresher on how to come up with your ARV.
Once you have a price in mind you really only have 2 options for selling your flip:
- Sell it yourself (For Sale By Owner)
- Sell it with a Real Estate Agent
According to NAR statistics– the typical home sold by a Realtor sells for 16% more than homes sold by the owner (FSBO). We have found this to be true as well.
So unless you have a real estate license, you are going to go with option 2 and hire a Realtor.
These are the steps you are going to follow with your Realtor to sell your project for top dollar:
- “Coming Soon Banner”– You are going to have a “coming soon” banner on your property, with your company name and contact information, while it’s being rehabbed…the whole time. This will get the neighborhood talking, and Realtors in the area to keep an eye on the property before it is even finished.
- Stage the house – You are going to want to hire a professional stager to fill up your vacant house with furniture and make the house look “like home”. That way when a potential buyer walks in they feel like they are at home, and can envision what the home will look like once they move in. We have found that paying the money for a stager is worth the extra money because stage home average 1-5% more in selling price and sell on average within 1 month. We have found this to be true as well.
- Host an epic open house before it hits the market – This strategy is a little more advanced. Once you have built your network of contacts in the industry, which we teach you how to do HERE, you notify your network that you are having an open house for your latest project- before it hits the market. They will be all over it. Everyone likes to know about a property BEFORE it hits the market so they can look good in front of their clients and that they are “in-the know”. This will also help you build better business connections for future deals.
- Put it on the MLS on Wed/Thursday through your Realtor- You want the property listed on the MLS before Friday because people start putting together their list of properties for the weekend around Wednesday or Thursday. You want to be sure that the early-bird searchers and the people who wait until the last minute all have your house on their schedule of house showings on the weekend.
- Advertise for the open house- Have your listing setup to only show for an open house on the weekend. 1 or both days. This will make EVERY INTERESTED BUYER SHOW UP AT THE SAME TIME. Just seeing other people looking at a house make buyers take action because they are scared someone else will put an offer in before them. Also post it everywhere: craigslist, instagram, FB, backpage, twitter, zillow, redfin, trulia, realtor.com etc… Your Realtor will help with getting the word out.
- Have it on the broker caravan- You also want your Realtor to hold it at the broker caravan the week it comes on the market. This is a caravan of real estate agents that get to see properties during the week that just hit the market. This will help build industry relationships and help bring in more buyers for the weekends open house
- Install a lockbox and let agents show clients- After 1 or 2 weekends of showing only during the open house…if your property hasn’t sold yet, it’s time to let other agents show their buyers on their own schedule. The house is vacant after-all. So have your Realtor change showing instructions on the MLS to allow agents to get the key from the lockbox and go show the house whenever they want.
- Negotiate offers- The idea is to get multiple offers so you can get into a bidding war. But even if you end up with only 1 offer- your Real Estate Agent will use their skills to negotiate you the highest and best price.
Once an offer is accepted it’s time to open escrow and close the deal… which your Realtor can help walk you through.
Eventually you close and you get a check like this:
That’s when you know it was all worth it. And you’re willing to go through it all again.
So you RINSE and REPEAT.
And please…be smart with your money! – Re-invest the majority of it into building your Real Estate business so you are getting checks like this multiple times a year.
For in depth training on how to get checks like this yourself-and what to do once you start making BIG MONEY check out the BTG Mentorship Program.
Chris M Cordova
CFO Better Tomorrow Group
Chris is an active investor, Realtor, Broker, marketer, serial entrepreneur, and co founder of Better Tomorrow Group. Follow Better Tomorrow Group on Instagram @bettertomorrowgroup on Twitter/Periscope @TheBTgroup and Facebook at Better Tomorrow Group. If you would like a FREE copy of Flipping Your Thoughts On Flipping Follow this LINK.