Top Ten First Time House Flipper Blunders

Top Ten First Time House Flipper Blunders
by gregrussell

Get Fast Cash with an Oregon Hard Money Loan

If you’re considering investing in real estate and have spent time listening to investment enthusiasts or perusing home improvement channels, you might have the idea that house flipping is an easy road to success.

Flipping houses is a popular investment strategy. Markets like Portland, Oregon and surrounding communities offer a range of single family investment opportunities from craftsmen to bungalows to ranch style homes ideal for renovation and resell. But savvy investors know it takes hard work, know-how and even some trial and error to reach end goals.

Learn from these common first time house flipper mistakes and get a jump start on your investment.

Top Ten Novice House Flipper Blunders

1. Lack of proper financing: You’ll need money to purchase, for renovations, for utilities while renovating, and a cushion for the unexpected.

2. A poor property choice: Neighborhood, property condition and purchase price should all be carefully researched and considered when purchasing. (See Creating a Budget below!)

3. Misunderstanding profit: Successful flippers adhere to the 70% rule. Do not offer/pay more than that amount of a property’s renovated, fair-market value to guarantee ROI.

4. Not having a budget: Creating – and following – a detailed budget is a must. Include everything from purchase price to cost of upgrades and repairs to allowing for time on the market.

5. Ignoring inspections and permits: Go through the proper channels up front and avoid problems later. A skipped inspection or permit can shut your flip down.

6. Overestimating abilities: Most flippers DIY. But there’s a time and place for putting your skills – or lack of – to the test. Know when to bring in the pros.

7. Miscalculating time: Experienced flippers know how long repairs and renovations take – and that problems can and will pop up. Talk to those in the know and create a realistic timeline.

8. Renovating to personal taste: Buyers are attracted to market trends and neutral colors. Get tips from a real estate pro on ways to renovate for a successful sale.

9. Doing too little/too much: Don’t overlook small touches like fixtures, lighting. On the flipside, don’t “over-renovate” for what will sell in the neighborhood.

10. Overlooking finishing touches: Landscaping and staging will help sell a property. Invest in the outside as well as inside of your house flip. Use a staging pro the first time you sell to gain tips.

Our Hard Money Loan Team Offers Fast, Flexible Financing

With the right financing, you’re well on your way to house flipping success. Talk to our lending team about a private money loan. We have 30 years of experience as real estate lenders in Oregon, providing fast, easy-to-apply loan options to investors. If conventional lenders have said no, credit history is an issue, or you just need a funding boost, Gregory M. Russell is here to help. Give us a call at 1-888-477-0444.

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