Flipping homes has gained a lot of popularity and attention over the years. The ease and viability of these projects are often inflated by depictions on television and social media. If you want to keep this from turning into your worst nightmare, here are five pitfalls you’ll want to avoid if you want to get into the home-flipping game.
Underestimating the Size and Scope of the Project
A Fix and flip project is often a far more arduous undertaking than many people realize. While social media and television may give you a false sense of timeline and assurance, you must understand that investment properties take a significant amount of time, energy, money, and patience.
Waiting to Explore Your Financial Options
Fix and flipping homes require different financial backing than it would for your primary residence. You will want a reliable lender who offers loans for flipping projects or hard money loans. Waiting to the last minute can produce poorly informed options and loans with unappealing terms.
Assuming You Can Do it on Your Own
Many potential home flippers are surprised to learn how aggressive the housing market is and how many options there are. If you try to embark on this journey on your own, you are bound to fail. You need a knowledgeable real estate agent to help you navigate the stressful process of finding the right property. They will not only negotiate your deal, but their expertise can prove invaluable in locating the right property to flip.
Lacking an Understanding of the Housing Market
Doing your research is also a must. Don’t rely solely on your real estate agent. While they will be an essential partner in your process, you should also understand the trends in the housing market to give you your best chance at turning a profit. Timing your fix and flip project correctly will play a pivotal role in the resale and profit of the overall process.
Relying on a Single Contractor
If you are going to make flipping homes a habit, you need more than one contractor in your arsenal. Contractors can often be incredibly busy, especially during months with more temperate weather. By relying on a single contractor, you can all too easily find yourself stuck in the flipping process with little leeway. If you want to avoid unnecessary and costly delays, you need more than one contractor.
Fix and flip properties are often not the silver bullet in your financial portfolio; however, they can prove to be far more successful and profitable if you avoid these all-too-common pitfalls. Don’t let the flipping process get the best of you. Instead, set yourself up for the most successful process you can.
Abundant Wealth Financial provides financing solutions designed specifically for property flippers. Contact our offices today to learn more about our fix and flip loans, as well as our fix and flip lines of credit.