Which Offer To Take
It can be really scary.
You found a motivated seller looking to get rid of their property FAST.
Then you spent the next 4 months calculating ARVs, estimating repair costs, getting a hard money loan on the property, hiring contractors, and everything else that goes into a fix & flip.
You finally walk through the property, confident in the changes you’ve made and that it’s now a masterpiece. It’s time to put it on the market.
And you get an offer.
After all the headaches, long days, and unexpected costs, you get an offer that would result in $18,000 in profit…
But you were hoping for $25k.
In fact, you’re not just hoping for that $25k – you feel like you’ve earned it. It’s yours because of all the blood, sweat, and tears you’ve invested.
What do you do?
Our advice, and the advice we teach our members:
Take the offer!
First Profit is Best Profit
I’ve personally been flipping homes for a LONG time (like 20 years long), and I’ve helped thousands of others flip homes.
I’ve seen this time and time again – so much so that I made it a rule in all my real estate investment dealings.
First profit is best profit! When I get an offer that results in profit, I almost always take that offer. So many investors (especially new ones) hold out for a better offer. They have a goal in mind, and they’re not willing to sacrifice any profit until they get the number they’re dead set on.
But you know what happens, in my experience?
Waiting almost never results in more profits. One of these scenarios usually happens:
- A better deal NEVER comes your way – it happens more often than you think that your first offer is the best one.
- You eventually get a better offer, but too much time passed, resulting in more loan and property costs for you and a hit to your profits.
- You do eventually get a better offer, and you walk away with that profit in mind, but you effectively lost money in the opportunity cost. For example: you only have a certain amount of bandwidth. There’s a limit to how many fix & flips you can personally manage at a time – and for a lot of people (especially new investors) that number is one. The longer you hold onto a property, the more time passes before you can move onto your NEXT fix & flip. So keep that in mind – even though you might hit your profit for THIS property, what about the next one?
Now, obviously there are limits to that first offer and when to take it. If you’re 100% confident you can profit $25k, don’t accept an offer where you’ll profit $5k. However somewhere in that $17k or more range? Accept that profit and move onto your next deal.
Ready to flip a home? I can teach you how. Click the button below and let’s work together on your next fix and flip!