Moringa Industries

If you are going to make your money when you buy, then you need to be sure to buy at the right price. Always keep the winning formula in mind:

(ARV x 70%) - Repairs = Maximum Price

Make your offers with that maximum price in mind. Of course, you always want to do better if you can. Learn to negotiate well, if you don't get your price you should move on. Be sure you don't fall into the trap of becoming emotionally involved with the house; if you do you'll wind up paying too much.

Financing is a huge part of any deal. It can easily add 10-15% to the total cost. If you have a poor financing arrangement it can be very difficult to turn a profit. Work with a lender that you can respect and trust, someone who really knows the business. The last thing you want is to do a tremendous amount of work that result in everyone making money but you.

Managing the project is incredibly important. You need to stay on top of all aspects of the job. Just because you are working with a contractor doesn't mean that you can sit back and relax. The TV programs are always showing people who get lazy and allow the contractors to mess up. Your primary responsibility is to manage the project from beginning to end. That means that you need to be there as often as humanly possible. Guaranteed if you take time off to do other things, something will go wrong.