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# Entrepreneur of the Week # Post 5 Sales Everyone who knows me knows I'm sick of sales, since I'm

#יםמההשבוי #פוסט5 Sales Anyone who knows me knows that I am sick of sales, ever since I can remember I have loved the idea of ​​selling. I think the first physical product I sold was explosives out of a Comedy Store pencil case with Jojo Halstra quotes. Admittedly, the business closed faster than expected, when the manager's secretary realized that a third-grade child had opened the stairs to the branch shelter...

Responses

  1. Prices all over the US have gone up, we all know that flip deals are getting harder and harder to find. You need to make sure that the prices of the houses in the area with corresponding data of size, number of rooms, location, etc., allow you to make a flip deal. Before entering into a flip deal, find out with your broker what the expenses are for the purchase, what the sales expenses are, send a home inspection (I only deal with contractors I work with regularly, not with home inspection companies, but that's another post). . Note that sales in your area may decrease during the winter months, and then you may stay with the property longer than you expected. I would go for a flip on the small size of an asset as a first flip, even if the profit is zero or marginal. To feel. Do not start transactions of 200-300 thousand. Successfully.

  2. I would just add a warning about flips. Offer you a flip for just 30% profit. Fix at 900000 Suppose + 10000 renovation = $ 100000 cost. You are told that the property is worth about $ 130000. Sounds Great. There is a little problem with that. Closing expenses: When you buy a property, there are relatively small expenses. When you sell there are 6% brokerage expenses, Teitel, Warranty Dade per buyer etc. Suppose 10%. That means what 130000, 13000 went. Remains 117000. If you can't sell while you were expecting, you will pay for Bito, property taxes, etc. for the entire period .. And if the house sold near 130000 has been renovated to a high level and you are renovating a lower level there is a chance you will not get 130. So be very careful.

  3. I will give my perspective as one that offers such deals to investors. If I wanted to make one or two deals a year I would use my private money and all the profit I take for myself, once the goal is a large amount of transactions you are limited in the amount of private money and you start looking for sources of financing. The fastest financing is an investor's money, it enters into a deal with you and also shares the risk with you, which would not happen with a bank for example. The bank will demand the interest and principal it gave you even if the transaction failed.
    Once you put investors into the equation you can make far more deals than you would with your personal capital.

  4. I actually accept it... there are a lot of people who need this initial support... you can call it a personal lender... or a financial coach who accompanies a process and also helps in finding a property.
    I personally don't use such a service, but it wouldn't bother me to suggest someone to acquaintances who are new to the field
    To accompany them where they would drive me crazy.
    From step A to Z.. Especially in the first transactions, the mistakes can cost you much more.

    I understand the need for this "profession".
    Someone who is currently between transactions and looking for financing can lend 2-3 such transactions if he has the real experience.
    Not someone who finished a course the other day

  5. It is a matter of cash flow and optimization of time.
    Their time is worth money…. Think that these people instead of performing and managing a flip can invest in looking for more deals that will make extra quick profit and almost risk-free.
    Some of these people have developed relationships and a suitable network so that the deals come to them at a pace and have no ability to handle every home throughout the process. Prefer to make a nice little profit without any hassle. (Sometimes even the house is not named!)
    This does not mean that they will not find 50% profit deals and leave them to themselves.

    With regard to cash flow, any such house requires raising or paying money and managing all this on a large scale can be risky and complex.

    Of course it is important to check that the deal really reflects 30% off the ARV (home after renovation) otherwise it is not really 30%.