Big Fix and Flip Mistakes In Real Estate
Since 2009, I’ve flipped 59 houses. And unfortunately, I’ve made the same mistakes multiple times on several of them. Why? Because fixing and flipping is not an exact science. I’ve had some time to reflect and came up with the four biggest mistakes I’ve made as a fix and flipper. Here they are, in no particular order:
Overestimating the value of a property Over remodeling the property, Under remodeling the property Underestimating the holding time Over estimating the value of a property. This is very easy to do, especially if you’re desperate for a deal. I find this happens to me because I go into the project thinking that I’m going to make house look as good, or better, than any other recent comp. Thus, the market will pay more. Of course, there can also be undisclosed environmental factors that adversely value. Like a 300 lb. barking dog living next door to my property. Over remodeling the property This happens a lot to new investors I meet. They think the property has to look as good, or better, than their own. I’m sorry but granite counter tops and plantation shutters aren’t necessary for an $80,000 track home on the outskirts of town. Formica and 2” fake wood blinds will do. Too many bells and whistles will kill your margins. Under remodeling the property Of the 4, I make this mistake the least. I tend to over remodel.