Are you thinking about investing in real estate by flipping houses? If so, then make sure you read this blog post to discover the most expensive blunders that house flippers tend to make. Here are 4 mistakes investors make when house flipping in Baltimore…
Flipping real estate can be highly lucrative if you do it right. If you don’t do it right then it could end costing you a lot of money, time, and frustration. We’re sharing 4 mistakes investors make when house flipping in Baltimore so you can avoid these blunders and improve the return on your investment.
House Flipping Mistake #1
If there’s one thing that every flipper learns pretty quickly it’s that you can never prepare for everything 100%. Brand new flippers often forget to “expect the unexpected.” For example, you can look at a property and think it looks great, only to discover that there are termites. Or you might tear up a carpet and find mold. While troublesome, these problems aren’t the end of the world but for investors who aren’t prepared for them, they can be a costly shock. Avoid this mistake by anticipating additional problems into your project plan, timeline, and budget.
House Flipping Mistake #2
Another mistake flippers make is hiring the cheapest labor possible. Rather than hire qualified professionals, flippers try to pad their profits by hiring any warm body. The problem is that cheap labor can actually be more expensive because they take longer and their work is not always up to the right standards, meaning it may need to be redone. Avoid this problem by hiring experienced tradespeople. You may spend more up-front but the work will be done right, quickly, and the first time.
House Flipping Mistake #3
It’s easy to become emotionally involved in the flip to the point where you forget that you are investing in a property for someone. Often times what happens is, the flipper starts making renovation and decoration choices that THEY prefer versus decisions that are cost-effective and will help to sell the properly quickly. This is the problem that flippers are simply not even aware of, but it does happen! To avoid this mistake, set a firm renovation and decoration budget and continually remind yourself that your goal is to create a house that can be sold at maximum profit.
House Flipping Mistake #4
Newbie flippers acquire a house and do all the heavy lifting to fix up the property, and then they make the mistake of assuming that the sale of the property will be easy. In some markets it might be easy but in other markets that’s not the case! Avoid underestimating the effort required to sell and instead, prepare yourself for investing some additional effort in finding buyers.
Flipping houses can be fun and profitable or it can be frustrating and problematic. You can make sure it’s fun and profitable by avoiding these 4 mistakes investors make when house flipping in Baltimore.