Meet seasoned investor Bridget Dawson from Ohio. She started investing in real estate in 2013 with hopes to leave her day job and start building generational wealth. Bridget is now a full-time real estate agent and investor with a portfolio. Below she shares the fundamentals she learned early on that have contributed to her flipping success.
Focus on Profit Margins
Like any wise investor, Bridget focuses on profit margins. She won the bid and purchased her Auction.com property in March 2020 for $67,500. She remodeled it and sold it for a 34% ROI in August 2020.
Bridget said, “Auction properties are usually priced below retail value so there are some great deals to be found with properties purchased through the Auction.com platform. A great ROI is between 10% and 15%. However, I always aim for an ROI that is 20% or greater.”
She then added, “The Auction.com property was in better condition than other retail properties I toured in the same price range, which allowed me to exceed my ROI goal!”
Diversify Your Portfolio
Having rental properties in your real estate portfolio is great. Many investors live off rental income or use that revenue stream to save for retirement. However, flipping properties is typically how real estate investors increase their cash flow — cash that is needed to continue investing in properties.
Since 2013, she’s invested in six properties. Of the six properties Bridget has invested in, she turned two into rentals and is in the process of rehabbing her fourth flip property. The way she determines if the property is ideal for flipping or renting is by the amount of work it needs.
She said, “If a property doesn’t require a huge amount of work to make it nice and livable, and the rental estimates allow for a decent monthly profit, then I would consider keeping a property for a rental. I prefer to flip properties that require quite a bit of work and have a great after-repair value.”
View Bridget’s Before and After Photos
Trust the Pros
Bridget prefers to flip properties that require more work because they tend to have greater profit potential — work that undoubtedly requires knowledgeable contractors equipped with machinery, tools, and a skilled crew.
Bridget knows the value of hiring skilled contractors first-hand. She rolled up her sleeves and tackled a small project at her first flip and quickly realized her rehab limitations. From then on, she used her time and effort to build a network of experienced and reliable contractors. She said, “I’ve built magnificent rapports with my contractors over the years, so they all make the rehab process seamless, and they all do top-notch, high-quality work!”
How to Build Your Network
Bridget’s network of contractors include general, electrical, plumbing, roofing, concrete, asphalt, landscape, and granite.
She said, “I’ve always been open to giving contractors a try based on referrals from friends, family, other investors, and contractors I’ve met while shopping at home improvement stores. I’ve learned to stick with contractors that are more relational than transactional.
My contractors and I have built wonderful relationships where we trust each other and do what we outline in the scope of work for each project within the agreed upon timeframes. Great contractors are hard to come by and to keep, so it’s very important to me that I always perform on my end by paying my contractors on time, every time!”
Take a cue from Bridget and start investing successfully now.
