August 20, 2007
Beth, Fairfield wrote...Ash project is taking longer than I thought "flip" projects should normally take to complete. I saw a "flip" TV program wherein the investor had many projects going at once, he was making LOTS of money, will you?
Great question, and the answer is "yes". Many of the programs on television depict a higher volume of projects than what I represent on the web site. I have a profit goal that I am targeting, but I also have serious time constraints that keep my project goals in check(ie. family). If I go faster and larger in scope, I will need to carry a larger overhead and I would have larger monthly holding costs. Additionally, at the time I purchased the Ash property, there were no better projects in the local market that I felt were worth pursuing.
I watched a program wherein the investor had close to $10,000,000 in project inventory that he was preparing and offering for sale. Great for them, and I wish them the best, but I don't need to add that much more stress to my life. I already have twins. Remember that leverage(using loaned funds to purchase property) is a key ingredient to succeeding financially, but you need to service those loans during the projects rebuild phase, and $8,000,000 worth of loans creates a huge monthly holding cost. Thanks for the question.