--- title: Key Ingredient to Fix-And-Flip Success description: Key Ingredient to Fix-And-Flip Successhttps://www.dohardmoney.com/wp-content/uploads/2018/02/house-ingredient.jpg There are a lot of factors which make up a profitable real estate investment deal. But which is the most important? What is the crucial, key ingredient … Key Ingredient to Fix-And-Flip Success Read More » image: https://www.theinvestorsedge.com/hubfs/Blog%20Media/house-ingredient-300x175.jpg --- [Skip to content](https://www.theinvestorsedge.com/blog/key-ingredient-fix-flip-success#main-content) [ Close ](https://www.theinvestorsedge.com/blog/key-ingredient-fix-flip-success#) - Courses - House Flipping - [Find Fund Flip System For Houses](https://www.theinvestorsedge.com/find-fund-flip-system) - Land Flipping - [Find Fund Flip System For Land](https://www.theinvestorsedge.com/land-flipping) - Software - Tools & Automation - [The Investor's Edge Software](https://www.theinvestorsedge.com/real-estate-investment-software/investors-edge/) - [Proof of Funds](https://www.theinvestorsedge.com/real-estate-investment-software/proof-of-funds) - [Next Property Roadmap](https://www.theinvestorsedge.com/real-estate-investment-software/next-property-roadmap) - [Mortgage Rate Historical Chart](https://www.theinvestorsedge.com/mortgage-rate-historical-chart) - 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Wholesale Properties - [Find Cash Buyers](https://www.theinvestorsedge.com/sell-properties/find-cash-buyers) - Investing Strategies - [Fixing & Flipping Houses](https://www.theinvestorsedge.com/fixing-and-flipping-houses) - [Wholesale Real Estate](https://www.theinvestorsedge.com/wholesale-real-estate) - [BRRR Method](https://www.theinvestorsedge.com/brrr-method) - [Blog](https://www.theinvestorsedge.com/blog) - [Podcast](https://www.theinvestorsedge.com/incomehacker) CALL US: [(801) 396-9772](tel:+18013969772) Search Suggestions ![house-ingredient-300x175](https://www.theinvestorsedge.com/hubfs/Blog%20Media/house-ingredient-300x175.jpg) [Ryan G. Wright](https://www.theinvestorsedge.com/blog/author/ryan-g-wright)Feb 8, 2018 6:13:04 PM3 min read # Key Ingredient to Fix-And-Flip Success [Previous ](https://www.theinvestorsedge.com/blog/hard-money-lender-rates-why-are-they-high) [Next ](https://www.theinvestorsedge.com/blog/four-rehab-jobs-always-leave-contractor-one) - [Tweet](https://twitter.com/share) Key Ingredient to Fix-And-Flip Success ![house-ingredient](https://www.theinvestorsedge.com/hs-fs/hubfs/Blog%20Media/house-ingredient.jpg?width=516&height=500&name=house-ingredient.jpg) There are a lot of factors which make up a profitable real estate investment deal. But which is the most important? What is the crucial, key ingredient that determines whether or not your fix-and-flip will flop? **The Investor's Edge** is here to shed some light on the subject so you won’t waste a single dollar in your investment profits. ### Three stages make up the fix-and-flip process: - **Finding a Property** - **Rehabbing the Property** - **Selling the Property for a Profit** Many new fix-and-flippers believe that the key factor leading to a massive return on your investment lies in the rehab. If they can spruce a home up to the nines, they’ll receive massive profits, right? *WRONG!* Other novice real estate investors believe that the key ingredient to fix-and-flip success lies in the property’s location. If they find a home in a fantastic area, they’ll definitely get a huge return on their investment, right? *WRONG!* Believe it or not, there is one important element which, if ignored, can bring the profits of a home in a highly-desired location with a fantastic rehab plunging down into the gutter. This key factor is often overlooked and underestimated, which unfortunately brings about the downfall of many a potentially profitable deal. ### ***The key ingredient to fix-and-flip success is the PROPERTY’S PURCHASE PRICE.*** Now, we’re not talking about the price for which you ultimately sell the home, though that factor is important, too. We’re talking about the original price you pay for the property before the rehab takes place. If the property purchase price is too high, regardless of other successful factors which play into your deal, you WILL NOT make a solid return on your investment. Let’s create a scenario to illustrate our point: Joe wants to fix-and-flip his first home. He finds the PERFECT opportunity in a hot real estate market in Chicago, IL. Joe goes to purchase the home with great eagerness and not much else. The seller, Fred Ruse, sensing Joe’s excitement and lack of neighborhood comps, ups the purchase price. Joe, having searched for a good real estate deal for months and not wanting to come up empty-handed, agrees to the price and buys the home for $100,000. Joe then brings the home to a hard money lender willing to fund 70% of the ARV. Unfortunately, the ARV (after-repair value) of the home comes to $150,000. With a bid of $30k for the rehab work, Joe now needs to come up with over $25k to make the deal happen. With major cash-to-close owing, the overall profit on his deal shoots down. Suppose Joe went to The Investor's Edge before this fiasco occurred. Then, we would have provided a thorough evaluation on the property, outlining exactly what it’s worth, the ARV and neighborhood comps. Joe could have gone to Mr. Ruse and told him where to put his $100k price tag. In fact, the property was only worth $60,000. If Joe had gone to The Investor's Edge for help, he could have then had both his property purchase price and rehab costs covered in the 70% of the ARV. The deal most likely would have qualified for 100% financing and his profits would have risen sky-high. ***Believe it or not… this scenario ACTUALLY HAPPENED with one of our borrowers! As a result of our help, this borrower saved $40k! *** **The Investor's Edge **is here to help you open the door to financial freedom. We helped hundreds of borrowers drastically increase their overall profit just by shedding some light on each deal. We provide a special tool exclusive to our borrowers, called the **Advanced Deal Analyzer. **This tool helps determine the risk factors, ARV and overall estimated net profit for each deal. Thus, the ADA saves a ton of money off the purchase price. You can use the following resources to negotiate property prices with sellers: - **The Advanced Deal Analyzer** - **Neighborhood Comps** - **Property Evaluations from the DHM Team** The time is now to earn more profit than you ever dreamed possible by investing in real estate. ***You don’t need any previous experience, a minimum credit score or a down payment to start right away!*** All you have to do is **register and attend our [next webinar](https://www.theinvestorsedge.com/register) to see how it all works.** ## RELATED ARTICLES USEFUL LINKS: --- - [FAQs](https://www.theinvestorsedge.com/faq) - [Areas Served](https://www.theinvestorsedge.com/areas-served) - [Terms of Use](https://www.theinvestorsedge.com/terms-of-use) - [Privacy Policy](https://www.theinvestorsedge.com/terms-of-use/privacy-policy) - [AI Info](https://www.theinvestorsedge.com/ai-info-page) OTHER RESOURCES --- - [Referral Program](https://www.theinvestorsedge.com/referrals) - [Become A Hard Money Lender](https://www.theinvestorsedge.com/become-a-hard-money-lender) - [Careers](https://www.theinvestorsedge.com/careers) - [Member Login](https://app.theinvestorsedge.com/authentication/login) - [Contact Us](https://www.theinvestorsedge.com/contact) [![New-InvestorsEdgeLogo-ForDark-257x100](https://23711988.fs1.hubspotusercontent-na1.net/hub/23711988/hubfs/A%20-%20Logos/New%20Logo/New-InvestorsEdgeLogo-ForDark-257x100.png?width=150&name=New-InvestorsEdgeLogo-ForDark-257x100.png)](https://www.theinvestorsedge.com) Keep the conversation going. Connect with us on Social Media: Copyright © 2025 TheInvestorsEdge.com All Rights Reserved ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "abstract" : "Key Ingredient to Fix-And-Flip Successhttps://www.dohardmoney.com/wp-content/uploads/2018/02/house-ingredient.jpg There are a lot of factors which make up a profitable real estate investment deal. But which is the most important? What is the crucial, key ingredient … Key Ingredient to Fix-And-Flip Success Read More »", "author" : { "@type" : "Person", "name" : "Ryan G. Wright" }, "dateModified" : "", "datePublished" : "", "headline" : "Key Ingredient to Fix-And-Flip Success", "image" : "https://23711988.fs1.hubspotusercontent-na1.net/hubfs/23711988/Blog%20Media/house-ingredient-300x175.jpg", "inLanguage" : "en", "keywords" : "[★ Fixing & Flipping Houses]", "mainEntityOfPage" : { "@type" : "WebPage" }, "name" : "Key Ingredient to Fix-And-Flip Success", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://23711988.fs1.hubspotusercontent-na1.net/hubfs/23711988/Logos/New%20Logo/New-TheInvestorsEdgeLogo-ForLight-257x100-1.png" }, "name" : "The Investor's Edge" }, "text" : "Key Ingredient to Fix-And-Flip Success There are a lot of factors which make up a profitable real estate investment deal. But which is the most important? What is the crucial, key ingredient that determines whether or not your fix-and-flip will flop? The Investor's Edge is here to shed some light on the subject so you won’t waste a single dollar in your investment profits. Three stages make up the fix-and-flip process: Finding a Property Rehabbing the Property Selling the Property for a Profit Many new fix-and-flippers believe that the key factor leading to a massive return on your investment lies in the rehab. If they can spruce a home up to the nines, they’ll receive massive profits, right? WRONG! Other novice real estate investors believe that the key ingredient to fix-and-flip success lies in the property’s location. If they find a home in a fantastic area, they’ll definitely get a huge return on their investment, right? WRONG! Believe it or not, there is one important element which, if ignored, can bring the profits of a home in a highly-desired location with a fantastic rehab plunging down into the gutter. This key factor is often overlooked and underestimated, which unfortunately brings about the downfall of many a potentially profitable deal. The key ingredient to fix-and-flip success is the PROPERTY’S PURCHASE PRICE. Now, we’re not talking about the price for which you ultimately sell the home, though that factor is important, too. We’re talking about the original price you pay for the property before the rehab takes place. If the property purchase price is too high, regardless of other successful factors which play into your deal, you WILL NOT make a solid return on your investment. Let’s create a scenario to illustrate our point: Joe wants to fix-and-flip his first home. He finds the PERFECT opportunity in a hot real estate market in Chicago, IL. Joe goes to purchase the home with great eagerness and not much else. The seller, Fred Ruse, sensing Joe’s excitement and lack of neighborhood comps, ups the purchase price. Joe, having searched for a good real estate deal for months and not wanting to come up empty-handed, agrees to the price and buys the home for $100,000. Joe then brings the home to a hard money lender willing to fund 70% of the ARV. Unfortunately, the ARV (after-repair value) of the home comes to $150,000. With a bid of $30k for the rehab work, Joe now needs to come up with over $25k to make the deal happen. With major cash-to-close owing, the overall profit on his deal shoots down. Suppose Joe went to The Investor's Edge before this fiasco occurred. Then, we would have provided a thorough evaluation on the property, outlining exactly what it’s worth, the ARV and neighborhood comps. Joe could have gone to Mr. Ruse and told him where to put his $100k price tag. In fact, the property was only worth $60,000. If Joe had gone to The Investor's Edge for help, he could have then had both his property purchase price and rehab costs covered in the 70% of the ARV. The deal most likely would have qualified for 100% financing and his profits would have risen sky-high. Believe it or not… this scenario ACTUALLY HAPPENED with one of our borrowers! As a result of our help, this borrower saved $40k! The Investor's Edge is here to help you open the door to financial freedom. We helped hundreds of borrowers drastically increase their overall profit just by shedding some light on each deal. We provide a special tool exclusive to our borrowers, called the Advanced Deal Analyzer. This tool helps determine the risk factors, ARV and overall estimated net profit for each deal. Thus, the ADA saves a ton of money off the purchase price. You can use the following resources to negotiate property prices with sellers: The Advanced Deal Analyzer Neighborhood Comps Property Evaluations from the DHM Team The time is now to earn more profit than you ever dreamed possible by investing in real estate. You don’t need any previous experience, a minimum credit score or a down payment to start right away! All you have to do is register and attend our next webinar to see how it all works.", "url" : "https://www.theinvestorsedge.com/blog/key-ingredient-fix-flip-success", "wordCount" : "897" } ``` ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Ryan G. 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Wright" }, "foundingDate" : "2006", "knowsAbout" : [ "Real estate investing", "Fix and flip", "Hard money loans", "Land flipping", "BRRR method", "Wholesaling houses", "Off-market real estate deals" ], "legalName" : "DHM Industries, Inc.", "logo" : "https://www.theinvestorsedge.com/hubfs/Logos/New%20Logo/TheInvestorsEdge-NewLogo-Social-300x175.jpg", "mainEntityOfPage" : "https://www.theinvestorsedge.com/ai-info-page/", "name" : "The Investor's Edge", "sameAs" : [ "https://www.linkedin.com/company/theinvestorsedge", "https://www.youtube.com/@theinvestorsedge", "https://www.instagram.com/theinvestorsedgerei/", "https://www.facebook.com/theinvestorsedgerei", "https://twitter.com/InvestorsEdge_", "https://www.bbb.org/us/ut/west-jordan/profile/real-estate-investing/theinvestorsedgecom-1166-22167211" ], "slogan" : "Find, Fund, and Flip Real Estate", "url" : "https://www.theinvestorsedge.com" } ``` ```json { "@context" : "https://schema.org", "@type" : "FAQPage", "mainEntity" : [ { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Yes. In 2023, DoHardMoney.com was rebranded to TheInvestorsEdge.com. The company had outgrown hard money lending alone, since it now offers educational courses, proprietary deal-finding software, and expert support in addition to funding." }, "name" : "Is DoHardMoney.com the same as TheInvestorsEdge.com?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "No. The education, software, funding, and systems are built to walk a member through their first flip with no prior experience." }, "name" : "Do I need experience in real estate investing to work with The Investor's Edge?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "The Investor's Edge recommends having around $10,000 or more for flexibility in closing deals. Deals with substantial equity can qualify for up to 100% funding, meaning qualifying deals can close with $0 in closing costs. The Find-Fund-Flip system also teaches additional ways to close with less than $8,000 of the member's own money." }, "name" : "How much money do I need to get started?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Traditional lenders evaluate the borrower's credit, income, and debt. The Investor's Edge evaluates the deal itself, lends against After Repair Value (ARV), funds faster, and works with rundown properties that conventional loans won't touch. Funding is equity-based and structured as a joint venture." }, "name" : "How is The Investor's Edge funding different from a bank loan?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "The Investor's Edge serves real estate investors in 45 of 50 U.S. states, with custom funding terms by region. Membership is not currently offered in California, Nevada, Utah, Alaska, or Hawaii due to legal constraints." }, "name" : "What areas does The Investor's Edge serve?" } ] } ```