Don’t make these House Flipping Mistakes
It might be cheap to buy, but is it the right place, do you have the right tools and professionals to turn it into a profit?
With plenty of TV Shows about house flipping, there’s a lot of interest and a n allure of quick money in the industry, but be aware, it looks a lot easier than it does on HGTV. Make sure you know the pitfalls before taking one on, and always lean on professionals — especially for your first flip.
Problem: Lack of funds
Real estate is expensive. Research all your financing options and find a lender that offers low interest rates. An easy way to research a prospective property’s total cost is by using a mortgage calculator or speaking to a mortgage banker.
Problem: Lack of time
Simply put: flipping takes not only a lot of investment, but a lot of time. Once you own the house, you’ll need to invest time to not only rehab it, but also schedule a host of inspections before you can consider selling it. And if you’re selling yourself, you’ll act as a real estate agent doing lots of showings before you find the right buyer.
Problem: Lack of Handy-man Skills
Lots of people take on a house flip with little to moderate handy-man skills. This is not a good idea unless you have lots of time and money to sink into the project. Hiring professionals will ensure that you turn the house in a timely manner and on your budget.
Problem: Lack of Knowledge
You need to be able to choose the right property, at the right location, and at the right price, and keep your budget to fix it up within a good margin to sell at a healthy profit. It’s easier said than done.
Too Long; Didn’t Read (TL;DR)
If you didn’t read anything until this point, know that before you get involved in house flipping, do your research and know what you’re getting into. And always hire professionals to get the job done right and on budget.