As a real estate investor, you are probably always focused on the current deal you are working, working fast to complete a flip or get tenants into your new rental property. And probably, before that project is wrapped up, you are focused on looking for the next one. It’s a great plan, keep moving, keep growing, and wealth will come, right?
It IS a great plan. But, the successful real estate investor is also taking the time to use smart money management practices and tools, to maximize their financial clout.
The very first item on our list is using and sticking to a budget. In any flip or investment property, the budget is vital. Know going in approximately how much your rehab will cost. Of course, there needs to be some fluidity to the budget, but keep a record of expenses, and get granular about it. Not just $946 spent at Home Depot, but what was that for? How much went into bathroom upgrades and how much was spent on lighting? Keeping track of these numbers will help you become better at estimating costs upfront and will therefore make your future investments leaner and better