has gone flat, you have a choice. The first option is to hold onto your flip and try to rent it out. With the right property man- agement company, this isn’t a bad deal and could help you make some money while you wait for the market to bounce back. However, if you borrowed money to make this flip happen, you might not have the luxury of waiting on monthly cash flow to slowly recoup your losses. If you really need to get as much money back as quickly as possible, you’ll need to sell fast. To do that in a flat market, you’re going to have to start with a heavily discounted asking price. Doing this should spark interest, even in a flat market.
can’t finish the rehab and flip the house. That’s when you start calling other real estate investors. Again, you have a choice here. You can call them to propose that you partner up on the property, or you can offer to sell it to them at a fair rate with the rehab in progress. If you can find someone who thinks he or she can finish the rehab and get the house sold quickly, you’ll be in good shape to use this as an exit strategy. To make sure that’s an option for you, take the time to network and build relation- ships with other real estate investors and wholesalers. You never know when they might be able to help you out.
ramping up your marketing. It’s also time to think about how low you can go without losing money, and it may even be time to think about what you’d deem an acceptable loss on the property. Take into account what you paid to fix and flip the house and how much capital your real estate investing business has to lose. This will give you a good bot- tom threshold, and you can decide how much to lower your house’s asking price to attract more buyers. •
Tarek El Moussa is the co-star of HGTV’s popular real estate reality TV show “Flip or Flop” along with his wife, Christina El Moussa. The couple started Success
WHENYOU CAN’T (OR SHOULDN’T) FINISHTHE FLIP Sometimes you find out that you’re in over your head and that you really just
WHENYOUR HOUSE WON’T SELL
Path Education to teach how to successfully invest in real estate. Visit www.SuccessPathEducation for more details.
If your house has been sitting on the market for a few weeks, it’s time to start
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