House flipping is a real estate term where one buys a property, restores it or tears it down and builds a new one, and then sell it for a profit. As simple as that concept might seem, there are a lot of pitfalls that can cause you headaches and thousands of dollars. Here are some mistakes you should avoid when flipping properties.
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| Image source: biggerpockets.com |
Not having enough money is one of the biggest mistakes one could make. Financing a property can mean that you would be paying interests. Keep in mind that every dollar that is added to the interest is a dollar you will have to earn if you plan to make a profit or break even. Avoid this altogether by paying in cash.
Flipping properties is also time-consuming, so make sure you have enough time to do so. Missing important milestones such as property inspections sets the sale back. Also, make sure you have time to sell the property.
Skimping out on workers is also a pitfall. One might think that restorations can be done with a few specialized workers. Keep in mind that having insufficient workers can affect the timeline in which the project runs on. Hiring a few can mean more problems in the end.
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| Image source: realtor.com |
Randy Benderson is the President of Benderson Development. The company was a venture founded by his father, Nathan Benderson, over 60 years ago. Randy is passionate about pursuing all the opportunities before him. For more information on property investments, visit this page.
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