October 9, 2007

Building A Portfolio

Building a portfolio as a real estate flipper is essential.  Every investor from the beginner to a seasoned expert should have one.

What I mean by building a portfolio is as followed:

When you are first starting out you may have trouble finding a private investor because you are new in the real estate flipping business and don’t have any credibility or completed deals so you will have to go with hard money lenders.

This is more than fine and understandable.  So what you do on your first few deals is you document, video tape and take pictures of everything and anything from the property.

You need to have before and after shots.  Take during the fixing part of the deal take pictures.  Document every single cost from purchase price, to repairs, to how long it took to complete each part of the process.  Show the comps on the property why it was a good deal and anything else you can think of.

Put together a nice looking portfolio like an artist would of their work.  As time goes on add every deal to the portfolio so you can present this to private investors and anyone who would like to lend to you.

It will show that you are a professional real estate investor, you can explain all of your reasons for the properties and they can see that you are successful at what you do.

All of the above will allow you to get cheaper financing down the road when the opportunity comes around.

So always document everything you do and put together a nice portfolio or a “Brag Book” of your accomplishments so you can show it off later.

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