Fourteen House Flipping Mistakes to Avoid

I decided to visit fix-n-flip websites to come up with a list of the top rooky mistakes you can make when buying, fixing, and reselling a home for profit. One of the websites I consulted while compiling this list of mistakes to avoid while fix-n-flipping houses for profit is Dave Ramsey’s website. Dave Ramsey is well known for his advice that all of us get out of debt, and that is good advice. If you have cash that you can spend to finance your fix-n-flip project, you will not feel so much pressure if the house does not sell quickly. You won’t be tempted to sell the property for a loss because loan payments and interest costs are eating away at your bottom line.  You will be able to wait out the market and sell for a profit.

However, if you need to find funding, there are private lenders and hard money lenders out there that will finance your project and I can help you find them. Calculate how much you need and give me a call.  I’ll do my best to find you the right loan for the right price quickly.

Below are 14 mistakes fix-n-flippers make in the areas of planning and budgeting, buying, renovating, and reselling properties.

  1. Planning and Budgeting: Not calculating permit costs, property assessment fees, loan originating fees, loan processing fees, inspection fees, points, or interest in your budget. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  2. Planning and Budgeting: Not knowing how much you can afford for the entire project before making a deal, including purchasing a home, making repairs, completing renovation projects, and selling the house.
  3. Buying: Buying a property sight unseen. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  4. Buying: The location you choose to buy in has a housing inventory shortage and such a high demand for houses that you become entrenched in a bidding war and end up paying above-market prices for a fix-n-flip property. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  5. Buying: You bought a house to renovate that is far away from your residence causing you to spend too much money on gas getting to and from the job site, and the repairs take longer to complete than they would if the house was nearby. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  6. Buying: Not knowing the market and not knowing if you are getting a good deal on the house you are buying. https://www.daveramsey.com/blog/how-to-flip-a-house
  7. Buying: Not looking for black mold, a bad roof, or a cracked foundation when evaluating whether to buy the house to fix and flip. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  8. Renovation: Putting in high-end upgrades while renovating the house that cause the house to cost more than the neighborhood can afford. https://www.daveramsey.com/blog/how-to-flip-a-house, https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  9. Renovation: You did not have a reliable contractor help you estimate the repairs for the house and a surprise repair broke your budget. https://www.daveramsey.com/blog/how-to-flip-a-house
  10. Renovation: You underestimated repair costs and did not add 20% to your estimated repairs. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  11. Renovation: You tried to do repairs yourself without experience and without budgeting for contractors when you need them. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/; https://www.daveramsey.com/blog/how-to-flip-a-house
  12. Reselling: Because you don’t know the market and have not done your research, you can’t accurately calculate the house’s potential value, and you don’t know how to price the house for sale. https://www.daveramsey.com/blog/how-to-flip-a-house
  13. Reselling: Failure to network with buyers and build relationships before picking a house to fix-n-flip. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  14. Reselling: You did not list with a real estate agent even though you hate hosting open houses. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/

REI Capital Resources is “focused on funding your success!”

Contact me at 
Patrick@REICapital.cash
512-213-2271 Grid Table 7

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