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Transaction costs kill most first time flippers. 6% is a large part of your margin. So unless you have a spouse who is an agent or broker (and you can effectively pay yourself) it's often difficult to carry, rehab, and sell at a profit. Another edge is construction connections. Paying retail for the rehab kills the margin.
The killer formula is spouses where one works construction and the other is a real estate agent. I know two couples that operate this way. They can make marginal deals profitable and as a result, can afford to outbid others that aren't similarly situated. That's what you are up against.
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"Rust never sleeps"
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