Common Mistakes House Flippers Make

Written by : RAC Maghreb

House flipping has been one of the most popular real estate investments of this generation. With hundreds of opportunities popping up monthly, it’s no wonder investors have been flocking to try and score a diamond in the rough. Unfortunately, many real estate moguls bypass the basics of house flipping and end up failing. Here are some of the common mistakes made by investors that you can avoid.

Financially “Unprepared”

Having enough capital to invest in your property is a must. Truthfully, investing in a property to flip is an expensive proposition. The acquisition cost alone is enough to empty a bank account, but with all of the fees and repair costs added in as well, the financial requirement is on a higher end. Investors sometimes come into the house flipping industry without a proper game plan and only enough capital to afford the house itself. You have to factor in fees, renovations, taxes, etc.

Lack of Time

Renovating and fully flipping a home is time-consuming and should not be placed on a strict time frame. Once you completely purchase the home you’re going to need to schedule inspections and dedicate time to repair it as well. Once it’s ready to be sold it has to comply with building codes followed by meetings with potential buyers.

With all real estate investments, there needs to be patience, a dedicated amount of capital, and knowledge. By taking your time and addressing each concern that you might have about the prospective home, you will bypass the common mistakes and come out in a positive margin.

Bio: Kuba Jewgieniew is the CEO of Realty ONE Group, a full-service real estate brokerage firm with nearly 6,000 associates, headquartered in Irvine, California.