Top Mistakes to Avoid
When Investing in Real Estate
home equity articles and tips
Many people have found that they can make money renovating older homes and selling them at a profit. While many have the skills necessary to complete this process, most experienced flippers admit that they have made some mistakes along the way. If you are thinking of starting to flip houses, then realize that these rookie mistakes cost you time, money and frustration. Here are some house flipping rookie mistakes you will want to be sure to avoid.
Hire a Cheap Contractor
You may think that you are saving money when you hire a cheap contractor, but the truth is that you are probably adding to your costs. It is a painful lesson that Tarek and Christina El Moussa learned when they traded their mortgage for a cheap apartment when they were first starting Success Path Reviews. They hired a cheap contractor that put them five months behind schedule. Now, the couple teaches others to flip houses after completing thousands of flips in Orange County, California. The couple now stresses in their classes that hiring an experienced contractor who knows how to cut expenses allows the project to move forward swiftly and on budget.
Design Like You Are Going to Live There
Everyone has their own likes and dislikes, but experienced house flippers will tell you that what you like in a home is not important when it comes to flipping one. After all, you are never going to live in the property. Instead, use neutrals and other colors throughout even if you love chartreuse. Stay away from the latest designer trends that may not be to everyone’s liking like using black appliances in the kitchen. Instead, opt for ideas that have stood the test of time and are still fashionable today. Let the market drive your decisions instead of your personal tastes. By doing this, you help ensure that the majority of people viewing the home can picture themselves living there.
Forget the Budget
You should go into every house flip with a budget in mind. The first step in being able to create a budget is to get a good home inventory before you purchase the property because this will give you an idea of the work that needs to be completed. Start by looking for serious damage like termites, water, foundation, plumbing and electrical problems that can be very costly to repair. Then, move on to other things like the HVAC system and the water heater. If the cost of repairs is more than 70 percent of what the house will likely sell for in its market, then it is usually best to not buy the home. Likewise, when you choosing design elements for the home make sure to keep the budget in mind.
Be a Jerk
Before you go to look at your first property, make sure that you make yourself presentable. Not only should you dress appropriately, but you should put on your best attitude. Realtors and others will instantly fall in love with your winning personality. Not only are they more likely to recommend that their clients take your offer, but they are more likely to remember you and call you the next time they think they have a property that you may be interested in. Likewise, treat contractors, bank officers and other people kindly and they are likely to keep their ears open for deals you might be interested in.
While you might still make some rookie mistakes, eliminating these four will help you walk down the road to success. Of course, each new flip is a unique opportunity to gain even more education.
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