I can freely admit that we made some really, really silly mistakes in the beginning. We were lulled in by all the house flipping success stories we heard. They made it sound so easy to turn a neat and tidy profit just by performing a few repairs and making some cosmetic changes. Of course, the reality we found awaiting us was much different. Our first flip was almost a disaster, and it was only by the grace of beginner’s luck that we didn’t lose money on the venture.
We learned quickly after that. The first experience almost scared us off from attempting a second flip considering how stressful it had been and how close we had came to complete failure. But at the same time, the small profit that we made was enough to keep us interested and motivated to try our hand at it again. After all, we knew we had rushed into things without enough patience or expertise, and we weren’t going to make the same mistake again.
Every subsequent flip became more successful than the last. We had a few flops in between but that can happen in this business even with the best planning and experience. Overall, it has been extremely rewarding and we’ve come a long way since we first started. Here are a few tips for avoiding house flipping mistakes:
- Get a team. Renovating a home requires a lot of work, not to mention extensive knowledge regarding not only remodeling and design, but also real estate, building codes, and other related areas. It is too much for one person to manage effectively. You need to find contractors, real estate professionals, home stagers, and others to work with and help you with the various aspects involved in flipping a home. We are lucky in that we started as a team so right off the bat we had people to put in the man hours. Furthermore, a few of us had relevant experience in construction and real estate. Areas of the business that were beyond our scope of expertise, we relied on qualified professionals to ensure the work was done properly and on time. For example, we count on delcampoplumbingandheating.com for all plumbing repairs.
- Be realistic about time. Everything about flipping a house takes time. From finding the right property to buy, to completing renovations, and finally finding a buyer, it is a process that can take months. Don’t rush into anything you don’t feel good about. Houses come and go every day, you’ll find another if you pass on this one.
- Be realistic about price. This is important when determining how much to spend on renovations. You can completely gut a house and transform it into a magazine cover-worthy home but if all the other properties in the area are listed at $300,000, don’t assume you will be able to sell it for much more than that.