Some real estate investors feel the key to earning money in the Rehab market is securing property at a reduced price. While this has merit, the key to successful rehabbing is flipping property quickly and moving onto the next rehab project. The longer a rehab project remains static in a portfolio the property holding expenses erode its profit margin.

A successful real estate investor realizes the importance of quickly flipping investment properties. The shorter the cycle from purchase to sale increases the net profit the deal. 4R Management offers several exit strategies that are designed to flip rehab projects 70% faster than traditional selling methods.

Cost of Holding Rehab Property

Example:

Property:

Loan:

Terms: 6 Months – @ 15% Interest per annum with no prepayment penalty

Months Held:

It is clear from the above figures that rehabbers must quickly flip or convert completed rehab projects. For this reason, it is imperative for a rehabber to have an exit strategy in place prior to completing the purchase of the project.

4R Management offers several exit strategies to minimize the property ownership cycle. 

• Temporary Seller Financing (TSF) / Simultaneous Closing
• Lease to Purchase
• Refinancing
• Combination of Strategies