Learn To Flip Houses | The 7 Deadly Sins Of House Flipping
If you want to learn to flip houses, make sure you know the deadly sins that will sink your project.
Ever since house flipping caught fire through reality television, droves of new, ambitious people have come out of the woodwork to try their hand in the business.
Unfortunately, you need more than heart to succeed in this field. You must aquire the proper understanding of the business so you don’t waste valuable of time and money, and ruin your reputation as a house flipper.
Emotion, while important in some ways, can often cause harm and prevent you from succeeding. You should use emotion to get yourself motivated at the start, but defer to your brain when dealing with most major decisions. To learn to flip houses is largely to learn to control your emotions.
The 7 Deadly Sins | Learn To Flip Houses
If you rely on your heart to lead your throughout your real estate venture, you might end up in a world of trouble.
Don’t fall victim to the 7 deadly sins of house flipping, unless you wish to be condemned to real estate investing hell—surrounded by bad credit, debts, and worthless properties.
Instead, learn to flip houses by understanding these 7 Deadly Sins:
Lust – Falling In Love With A Property
As an investor, you’ll spend a great deal of your time scoping out the many properties available, trying to find one that will work for a fix and flip.
That’s when you see it—the perfect house.
It’s in a great area with an acclaimed school district. It is rough looking but has great bones. And it has some unique features that could be utilized as selling points. You’ve finally found the perfect property.
However, maybe the seller isn’t willing to negotiate down to your MAO, or “maximum allowable offer”. But you want this house, even if you’ll have to pay more than 70% of the ARV. It’s worth it, right?
Wrong. You need to make sure to never buy a property you aren’t going to profit from. It doesn’t matter how appealing or ideal the house is. If you aren’t going to make money, than you aren’t going to make money.
Think with your head. Don’t get wooed by the siren song of a three bedroom, beachfront property with a two-car garage.
Pride – Doing Everything Yourself
Many new flippers have a fantasy of walking into a dilapidated house, knocking down a few walls, sweeping away the dust, and slapping on a new layer of paint. Good as new.
However, it is not nearly that simple. To tackle the rehab that comes with a flip is an incredibly heavy task. Even the most experienced contractors will have trouble doing it alone. Maybe you specialize in electrical work, but that still leaves out all of the other skill sets like plumbing, masonry and carpentry.
Additionally, you might help from people like interior designers, real estate brokers, or even lawyers.
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