In episode 115 of the Better Than Success Podcast host Nicole Purvy talks her top 7 Real Estate Rehab Mistakes.
Nicole Purvy talks about her most recent real estate “flip” investment. She explains some things she learned during this journey that could be helpful to anyone who is interested in/or currently doing real estate flips.
Top 7 Mistakes on Nicole’s Real Estate Rehab Project
- Knowing the process of buying a REO property
- When buying a REO (Real Estate Owned) property/bank owned property, you have to be prepared to not close for a while. The process may take up to 6 months just for the bank to process the deed properly.
- In Philadelphia, it can take 4-6 weeks to get gas services turned on
- In this episode, Nicole shares her experience of not being able to get the gas turned on right away slowing up the process of closing on the projected closing date.
- Understanding the importance of getting a mortgage commitment date
- When rehabbing a property it is important to push a mortgage commitment date simply so you, as the rehabber, have enough time to get everything done to the property prior to closing so all parties will close properly.
- The importance of micromanagement
- Micro management is important so that everyone on the project will stay on top of everything in the process of rehabbing. Understanding no matter how many people are on the project, everyone needs to be involved equally to make the process as smooth as possible.
- Assuring that you visit the property days before closing
- Nicole explains that the buyer will have a list of things they want done to the property before closing. To make sure closing goes as planned, you need to stay on top of the list of requests. If you do not, this may push the closing date back due to the requirements from the buyer not being met.
- Request a large deposit at the beginning of the home buying process
- This will be more secure for you as the rehabber. The more secure the deposit is, the more secure the buyer will be for purchasing the home.
- Making sure you are on top of the GC (General Contractor)
After going over some mistakes made during her most recent project, Nicole Purvy also list some good things she endured during the process. Some good things about this deal which included:
- Having a good GC (General Contractor) that can micro-manage
- Make sure you do a flip in a flip neighborhood/home owner neighborhood
- Numbers accuracy (knowing you numbers beforehand)
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