Dweck’s advice: Don’t skimp on renovations and save the receipts to show appraisers.
“The biggest challenge right now is appraisals,” Dweck says. “The more ammunition you have to give appraisers, the better. But there is absolutely no guarantee.”
Maher Hanna, a student of Levinrad’s seminars who started investing full-time this year, says flippers — particularly beginners — may have to be satisfied with modest profits.
—Do your own due diligence. Investors should know the true value of a house without relying solely on outside sources.
Too many novice investors take a real estate agent’s word, Levinrad says. Even appraisals may offer only a ballpark figure, he says.
The best way to determine value: Travel to the neighborhood, attend open houses and see what similar-size homes are selling for.
