1. Remember, It's a business. It requires planning and knowledge to be successful.
2. It requires money. Most first-timers run out of money. Don't underestimate the amount of money you need—plan for unexpected issues.
3. Skills to repair the property. If you don't know what you're doing, make sure you hire the right contractors to get it done. Most newbies try to do it all themselves when they have no clue what they are doing. Just hire the right people.
4. Patience, it does take time. Set realistic goals on time to complete the project. Remember, it's a business, and treat it as such.
1. Paying too much for the property. If you're excited about the property and overpay, it will cost you in the end. Make sure you know your costs to fix the property and the sell value at the end.
2. Not budgeting enough money. I always plan for unexpected repairs you can't see, such as a broken sewer/water line, etc.
3. Over-improving the property. You want to make sure you know what other homes have in the area, and you don't want expensive high-end fixtures, etc., if other homes in the area don't have them. Know the neighborhood.
4. Hiring contractors based on price and not experience. It's always easy to say, let's hire the cheapest contractors, but experience matters more.
5. Doing all the work yourself. If your an experienced contractor, then, by all means, complete some of the project's renovations solo. But if not, then, by all means, hire a pro to do the work for you.
6. Evaluating the property by yourself. You might think you have the right eye for potential, but you never want to buy a property without consulting someone who has done this before or a contractor. You need to make sure you have a solid handle on your potential repair costs before making an offer. You could get into trouble by overspending on the property or running out of money without doing this.
7. If you do this for the first time, don't buy a property that needs much work. For your first one, buy a property that only needs a few repairs and some fresh paint. This way, you know this is something you can handle and see yourself doing in the future.
House Flipping 101
Do you need good credit to flip a home?