Let’s get one thing out of the way. You will make mistakes, and I urge you to reframe those mistakes as lessons. As a new flipper, you will learn on the job and improve as you go (like how I did).
With that said, I want to touch on five of the most common mistakes I see new house flippers make, so you can avoid making them.
Misconception About Successful Flips
There are a lot of misconceptions about house flipping. One common misconception is that getting a really good deal on a home means they’re guaranteed the project will succeed.
I have seen several flippers buy houses that have something fundamentally wrong with them because they thought the price was good. Don’t do this! Never overlook problems with location, ceiling height, and floor plans. When fundamental issues can’t be improved, it won’t translate well when it’s time for resale.
Instead, look for the potential in homes while keeping in mind the red flags. I always tell flippers to never invest in a house with a fundamental concern like poor location.
Don’t Have a Plan
This might seem obvious, but many house flippers lack a thorough plan before diving in head-first. Flippers need a plan ready for when they close on the house. The countdown is on from the time an offer is accepted until closing on the house.
You can never over-prepare. The more you plan for closing, the quicker you’ll be able to complete the flip. Use this time wisely to create the work scope, plans, getting permits, and bids.
I talk more about the first steps toward a successful flip here.
Lacking Timely Decision Making
Time is money. A huge mistake as a flipper is remaining undecided on things when meeting with the contractor. Without making the necessary decisions, you can’t get an accurate bid since the contractor(s) aren’t sure what they will have to do.
As you plan your flip, make these decisions in a timely fashion. Without doing so, there is confusion and uncertainty which can carry through the entire project.
Here is a shortlist of some critical decisions to make early:
- What is the goal timeline?
- What is being fully renovated?
- What is your budget?
- What will be upgraded without renovating?
Flippers who ignore problems and put off addressing concerns are not doing themselves any favors. Some circumstances I have seen come up in the past have to do with unforeseen electrical or plumbing issues or problems with contractors.
As soon as you are confronted with an unexpected issue with the home, it’s time to get back to the drawing board and pencil the solution into your timeline and budget.
Contractors can pose other problems. Remember: Contractors who don’t show up will never complete a renovation. Avoid this altogether by having clear communication and expectations. If you choose to let behaviors slide with your contractor, you’ll see shortcomings in the end results and even your profits.
Not Prioritizing the Business
A final mistake new flippers make is not prioritizing the business side of their flipping journey. Decisions you make when flipping will directly impact your profits and ability to move forward with more flips.
Prioritizing the business side of your business means taking decisions seriously, sticking to a timeline and budget, and keeping your eyes peeled for more properties during current projects.
Think of it this way. When something isn’t important, you are more willing to let the little things go. But when it comes to house flipping, those little things can add up to a “pass” from potential buyers. Therefore, I encourage you to take it all seriously!
Ready to take that next step when it comes to flipping?
Perfect! I’ve got additional resources to help you get the information you need to move forward on creating your flipping life.
Make sure you have the Fixer Upper Checklist so you know which areas are key to added value in a home.
There are several videos available on finding houses, renovations, and funding on the Threshold Homes YouTube Channel. Check out your favorite flipping topics and new videos weekly.
You can’t close a successful and profitable flip unless you start. What is your biggest challenge with getting started house flipping? Let me know. It may be an area I’ve also had questions about myself. I’m here to help, so drop me a DM.
Want to buy a property and renovate it?
Get my checklist that will help you — 8 Things I look for When Purchasing a Home. Just click here to download it.
Love before and afters?
Are you looking to buy a house to renovate? Check out the fixer upper checklist to help you find the house with the most “flip” potential.For more inspiration, follow me on Pinterest @thresholdhomesmn