Top 2 Mistakes When Flipping Houses
With a lot of television programs showing how easy flipping houses can be, many are tempted to immediately jump into the bandwagon.
They will only realize later that they should have read more articles about flipping houses, watched more instructional videos, and planned their projects more carefully.
Neophyte flippers commit several mistakes in their first few flips and these are the two most common: The first is buying a house without proper inspection.
Sometimes, flippers or rehabbers find a very cheap fixer upper home.
The deal's so good they fear it might go to another flipper if they don't seal it immediately.
So, what they do is check the house themselves and swiftly buy it believing they saved thousands of dollars and outfoxed competition.
They then discover that the property has structural problems and would require more than just "cosmetic" rehabbing.
Remember that you are a beginner and that while you will learn in time, there are some things you must leave to experts for now.
It would be better to hire a qualified home inspector whenever you check houses.
The inspector is trained to diagnose the problems you might encounter with the house you are about to buy.
He knows whether the roof needs to be replaced or if the piping system is busted, among others.
What's a few bucks for the inspector if you can avoid a mistake worth thousands of dollars.
The second is buying a house without checking updated cost of materials.
So you've inspected the house and you think it needs some repair on the flooring.
Last time you checked, hardwood materials were worth a penny so you buy the house, thinking it won't cost you much to repair the floor.
You go to the hardwood store and your eyeballs roll on the floor seeing that hardwood prices doubled in just a few months.
Your repair budget is ruined and your profit is halved.
Lesson: always check the prices of materials that will eat up most of your repair budget before you buy any fixer upper.
Establish a good rapport with the hardware guy and give him a ring, asking "how much is this, how much is that.
"
They will only realize later that they should have read more articles about flipping houses, watched more instructional videos, and planned their projects more carefully.
Neophyte flippers commit several mistakes in their first few flips and these are the two most common: The first is buying a house without proper inspection.
Sometimes, flippers or rehabbers find a very cheap fixer upper home.
The deal's so good they fear it might go to another flipper if they don't seal it immediately.
So, what they do is check the house themselves and swiftly buy it believing they saved thousands of dollars and outfoxed competition.
They then discover that the property has structural problems and would require more than just "cosmetic" rehabbing.
Remember that you are a beginner and that while you will learn in time, there are some things you must leave to experts for now.
It would be better to hire a qualified home inspector whenever you check houses.
The inspector is trained to diagnose the problems you might encounter with the house you are about to buy.
He knows whether the roof needs to be replaced or if the piping system is busted, among others.
What's a few bucks for the inspector if you can avoid a mistake worth thousands of dollars.
The second is buying a house without checking updated cost of materials.
So you've inspected the house and you think it needs some repair on the flooring.
Last time you checked, hardwood materials were worth a penny so you buy the house, thinking it won't cost you much to repair the floor.
You go to the hardwood store and your eyeballs roll on the floor seeing that hardwood prices doubled in just a few months.
Your repair budget is ruined and your profit is halved.
Lesson: always check the prices of materials that will eat up most of your repair budget before you buy any fixer upper.
Establish a good rapport with the hardware guy and give him a ring, asking "how much is this, how much is that.
"