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How to Maximize ROI on Your Next Fix and Flip AS AN INVESTOR IN TODAY’S VOLATILE REAL ESTATE CLIMATE, YOU MUST UNDERSTAND THE DETAILS BEHIND EACH AND EVERY COST ASSOCIATED WITH A PENDING LOAN.
by John Santilli
alculating your potential for significant ROI can often be time-consuming and cause unwanted stress. When considering your next fix and flip, ensure you have the right tools to help you properly analyze your buy, hold, and sell costs before you jump in and make that financial commitment. WORK WITH A LENDING PARTNER WHO’S JUST AS COMMITTED TO YOUR ROI. Whether you’re investing for instant income or holding your real C
estate investment for the long term, set your business objectives first and bring in the right partners to help you make an informed decision. To get started, create your own profit calculator or find one online to help determine, list, and define your profit margins. A comprehensive template will also help to value the project today, define and track your costs throughout the project, and analyze financing options if that’s your chosen path. Today’s market can be tricky. Account for unforeseen delays or material costs by including contingencies. Ensuring you think
ahead about your profit margin or after-repair-values are critical steps to making good decisions. It’s best practice to prepare and calculate the return on your investment for flipping or financing options for long-term renting. STAY FOCUSED IN A COMPETITIVE MARKET THAT HASN’T COOLED QUITE YET. Although real estate prices may have cooled in fourth-quarter 2022, availability of properties is still competitive. With existing homes
52 | think realty magazine :: january – february 2023
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