At Flip House Funding Texas, we are investors ourselves. We know the struggles in getting started and the ups and downs of investing. On our end we have made it our goal to follow the 2 most important rules of investing. This alone has helped us more than any other single strategy.
Investing in houses and commercial property is Big Business! There’s lots of money at stake and it’s extremely important to have a good process and understand what you’re doing. If you don’t have a solid process yet, don’t worry. There will be a learning curve, just do some research or ask for advice to get started. The process should be able to clearly define taking you from $0 to Profit. You will need to be specific and define all the key areas: like acquisition, financing (warning – shameless pitch: Hard Money Loans, we’re fast and easy!), rehab, exit strategy, etc.
This process will give you guidance and help you finish your project in a timely manner. Remember that you are in a race against the clock because every second you have the house, without income, you are burning money. And don’t take that the wrong way. Your time table is an important part of the investment and must be accounted for. But understand that time is against you. Between holding costs, taxes, insurance, utilities, etc. – there is a big difference between holding a house without income for 2-3 months and having it for 12 months. A long hold without income will eat away at your profit.
Your process should set up some rules. Each and every day your process allows you to chip away at the little stuff, all while staying focused on the big picture. In the end, your process – or gameplan – helps you to pay attention to making money without sweating all the little details. It preps your attitude for all the big expenses and obstacles that come up. And more than anything else it keeps you aimed at the Profit at the end of the project.
So, as you build your gameplan and process – we strongly recommend that you build into your plan the 2 most important rules of investing. And it is essential that you follow them both!
- Don’t lose money!
- Don’t lose money!
To learn more about how we invest or how we can help you get your deals going – give us a call or check out our online resources at FlipHouseFundingTexas.com.