Top 10 Mistakes “Rookie” House
Flippers Make:
1. Thinking
that house flipping is as easy as it looks on television
On television, they fail to include several important aspects; such as all
the costs other than the actual repair costs when flipping a property (i.e. selling
costs, carrying costs, financing costs, closing costs)
2. Doing
the work yourself on a flip
Although you may think you’re
handy, hiring a professional contractor could save you lots of time and money
in the long run.
3. Counting
on house prices to keep increasing to make a profit on a flip
Although home prices do appreciate
over time, you aren’t interested in “over time” – your interested in “right-now”!
4. Partnering
with the wrong people on a flip
Define each partners role and have
it in writing – deal with people you trust, and have the expertise for their
role in the deal.
5. Hiring
the wrong contractors
Get references and ask to see their
liability insurance policy – hiring a professional could save you thousands.
6. Underestimating
the time it takes to flip a house
Back to number 1 – television shows
make it look quick and easy. It could
take several months to locate a property, several more to close, several more
to rehab, and several more to sell.
7. Underestimating
the cost of repairs on a flip
ALWAYS double your initial estimate
for the unknowns (a rule of thumb I have used and it’s typically right on!)
8. Taking
on too big of a project on your first flip
Start small – Although you may have
the resources to go big right away, start small to learn the process first.
9. Paying
thousands of dollars to learn how to invest in real estate
Oh, my personal favorite! I always have to ask myself – “If this person
can make so much money flipping houses, why are they asking me for thousands of
dollars?”
10. Not
knowing the value of the home you are flipping or overpricing a home
Hire a professional real estate
agent that is knowledgeable about the area to get it right. This will be the best money spent during the entire
flip!
Read the full article at: https://investfourmore.com/2016/08/22/what-are-the-top-10-mistakes-new-house-flippers-make/
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