There are always things that can go wrong. But rather than focusing on that as a way to not move forward let’s look at how you can have house flipping success. Knowing what to avoid is key. If you’ve heard any of my podcasts or training sessions you’ll know that I firmly believe it’s helpful to know where others have had struggles so you can prepare and potentially even avoid these challenges. I’ve been flipping houses for nearly 15 years and there’s still constant learning with each project.
Let’s dive into some of the most common (and avoidable) challenges:
1. Thinking you need to know it all before you start
We all know there is an abundance of information out there when it comes to house flipping. TV shows, blogs, infomercials, big ticket coaching programs, you name it. All of it is helpful but it can make you crazy at the same time. And, with some of the information online, you don’t even know if the people sharing have any experience. It’s not uncommon for people to do a few houses and then move over to coaching.
Just remember, that for all of the information that exists, there is no substitute for doing. And take it from someone who knows, you do not need to know every type of offer strategy in order to start marketing. You just need to commit to taking the first step. So if that’s flipping, you need to commit to making offers.
2. Believing you have to have ________ to be successful
Fill in the blank for you. Maybe there’s one thing you think need to have to start and that’s keeping you from moving forward. There may even be multiple reasons. For me it was money, experience and connections. I thought it those were necessary for me to have those before I started. Once I realized that there was no quick and easy way to get those I knew I just had to start.
3. Not researching your market
Before you decide to buy there are some key questions you need to ask. Looking at a variety of properties in different areas will help to narrow the process. Consider important areas like school districts, employment growth, commuting ease and access to recreational areas. These are all areas you’ll be able to highlight when you list your flip for sale. It’s also a way to get a jump on areas that may be up and coming.
When looking at areas make sure to also identify the number of homes currently for sale, average days on market and what prices are homes are selling.
4. Neglecting networking
it may not always be the feel productive but I can personally attest to the fact that attending real estate investing events makes a difference. It may not even be something you notice right away but the connections you make will impact your business. I have met private money lenders, cabinet distributors, hard money lenders, countertop fabricators and other investors.
5. Waiting to build your network
When it comes to finding the right people to work with it can take some time. Get started now collecting names. Ask for referrals, jot down names and phone numbers from places where you see renovations going on. During your networking ask if there are any recommendations they have for people to know or work with. You’ll be surprised at how you can build
6. Not preparing your financial options
Even when you have the cash to buy and renovate a house, are there other options available that may be comparable or even better. If you don’t look, you’ll never know. For the first few years I was flipping, I was using cash to fund the majority of my projects. I didn’t realize that by structuring my business that way, I was limited to how many projects I could work on and my purchase price was restricted. That all changed when I found other financing strategies available. Scaling and growing a flipping business will be dependent upon how you manage the purchase and renovation funds.
7. Over improving your flip
It is so tempting to spend just a little more on the tile, and the vanities, and the lights. The challenge when you star to spend that extra money is that it all adds up. And just because you choose to spend those extra dollars does not mean that the value will translate on the sale side. This is the number one area that even experienced flippers often forget. It is costly and can result in the difference between a profitable project and one that is break even. And don’t fall for the myth that a flip can only look good if you spend more. I 100% know that is not true. Planning and intention can happen while maintaining a budget.
All of these areas can affect the profitability of a flip but the good news is that when you know about them you can sidestep them. The path to successful flipping is one where you’re aware of the areas where you can make decisions so that your flip is as profitable as possible.
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?
Follow us on IG @thresholdhomesmn and FB @thresholdhomesmn to see the projects we’re working on. And for more ideas on renovating & restoring fixer-uppers!
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
Leave a Reply