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Five Dangerous House Flipping Mistakes

Dave Clabeaux ! Five Dangerous House Flipping Mistakes

 

Flipping a house for the first time is exciting!  Your head is spinning
with different ideas to improve the property you purchased, and of
course the possibility of big profits.

However, if you are not prepared, you can fall into the trap of making
one or more of these 5 common but dangerous mistakes:

1.  Buying the Wrong House.  If you don’t buy at the right price, your
flip is doomed from the start.

2.  Underestimating Repair Costs. If you do not really know what your
rehab costs are going to be, you are rolling the dice with regards to
whether or not you will turn a profit.

3.  Becoming Emotionally Attached to Property.  Even though this seems
like common sense, I see this happen almost every day: someone becomes
emotionally attached to a house, ignores the numbers, and ends up losing his
shirt.

4.  Not Leaving a Cushion.  If you want to make 30k on a flip, then you need
to buy a house that you can make 40k on.  This leaves you a cushion of 10k
in case any unforeseen expenses come
up.

5.  Lack of Skills or Knowledge.  This is probably the #1 beginner mistake I see.
Only a fool attempts to flip a house without the guidance of someone who
has done it before.

I was fortunate enough to have a couple mentors to show me the ropes.  

If you know someone who has successfully flipped houses and is willing to mentor you, please use them.  Offer them a percentage of the profits.  It will be more than worth it.

 


Five Dangerous House Flipping Mistakes

Dave Clabeaux is a real estate investor. David lives in Northern Kentucky with his wife and son. Dave enjoys many aspects of real estate investing, including rehabbing, offering rental-to-own properties, and building a retirement portfolio by acquiring properties with no money down using owner financing.  As a former high school English teacher, Dave is also very passionate about teaching others how to build wealth through real estate.

  • Author: Dave Clabeaux
  • Published: 2017-01-16 11:35:18
  • Words: 251
Five Dangerous House Flipping Mistakes Five Dangerous House Flipping Mistakes