4 Flipping Mistakes to Avoid

 


Fix and flip projects can be highly profitable if done right. However, most investors make common and minor mistakes that jeopardize the entire project. If you're working on a fix and flip project, make sure you steer clear of these pitfalls by avoiding these mistakes.

Purchasing an Expensive Fixer-Upper

You must get a good start with your fixer-upper. When talking about flipping, this can mean avoiding purchasing a home with over 70% of its After-Repair Value (ARV), exclusive of the repair costs. When you follow the 70% rule from the beginning, you save up enough money for repair costs and any unforeseen delays and costs.

Working without a Budget

The golden rule for flipping a project is drafting a budget; you can't work without one. The budget would include property price, taxes, repair costs, duration, etc. This is crucial since you won't be able to lay out your business plan with a budget. Fix and flip projects can be quite expensive and tough to track, which is why most individuals create an effective budget and track it through the entire process.

Forgoing a Pre-Sale Inspection

The worst mistake you can make with your fix and flip projects is inspecting at the wrong time. Inspecting the property before a sale can be a wrong move. Home inspections need to be conducted before outlining the business plan and setting the budget.

This is because a home inspection entails evaluating the home for any damages and problems, which can come in handy when renovating. So, getting a home inspection after all the remodeling is done can mean skipping out on essential renovations. Therefore, before setting the budget or plan, get the property inspected.

Hurrying the Listing

While this flipping mistake may seem quite obvious, you'll be surprised to know how common it is. Most investors are ready to list the property even before the project is completed. From a buyer's perspective, this can seem like a rookie mistake. Buyers want to see a completed project, and an incomplete one will make them lose interest. As a result, it can increase the time of your property on the market, which can imply high maintenance and repair costs.

Need a dependable Fix and Flip Hard Money Lender? Insula Capital Group Can Help You!

If you're looking for reliable fix and flip financing options, contact Insula Capital Group.

Insula Capital Group is a leading real estate financing company offering various hard money loans. Their hard money loans are applicable for all real estate projects, such as fix and flip projects, land development, buy and hold, new construction, etc.

Get in touch with them right away!

 

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