Need Help? Call 561-948-2127
đź’° You make your money when you buy.
You can’t make any money if you overpay.
And the biggest mistake new investors make is that they overpay.
I see this all the time. New investors come to me and say, “Lex, what do I do? How do I get out of this?” I say, “You can’t get out of it. You’re stuck.”
That’s like asking me after you opened the barn door and the horse ran out. Now the horse is two miles away. How do I get the horse back? You can’t. It’s gone.
⚠️ As a new investor, make sure you do not overpay.
Understand After Repair Value (ARV), comparable sales, and what a house is worth – or what you could sell a house for after you have repaired it.
Make sure you know how to estimate material and labor costs. You cannot figure out how much to pay for a property if you don’t know how much the repairs will cost you.
You need to understand both components: the material costs and the labor costs. And you need to have a crew ready to go to start working on that house.
đź“Š When you know what a property is worth (ARV) and you know how much it will cost to fix it, then you can calculate your maximum offer price. This is the most you should be willing to pay to buy the house.
If the seller wants you to pay more than this number, then you need to walk away.
Remember, you make your money when you buy!
It’s better for you, as a beginner, to invest upfront in your training and education so that you know what you are doing, so you don’t make a mistake, and you don’t overpay for a house. You need to know the ARV and the repair estimate to calculate your offer price. You can’t be using the wholesalers opinion of what the house is worth. If you do, you will overpay.
Most new investors are afraid to spend money investing in training and education. If you think education and training is expensive, lack of education and training is way more expensive for you if you overpay for your first property.
Invest in your training and education and make sure you are not overpaying for a property. You can do this by attending my real estate training events which were created for this purpose – to teach new real estate investors how to get started.
You make your money when you buy, so make sure that you buy right.
🏠If you want to learn After Repair Value (ARV), labor and material costs, and how much to offer on your next property, then make sure you don’t miss the Fixing and Flipping Houses Boot Camp that is coming up.
I will spend three days at this event reviewing and teaching comparable sales, After Repair Value, material and labor costs, and calculating your maximum offer price. I will even be taking my students on a bus trip to Home Depot to review, aisle by aisle, the materials that we use in our rehabs. Don’t miss it!