Hi. My name is Joe Pantoja. I am a certified real estate agent in Tampa Florida. I love to talk real estate and in my experience people always have questions about fix and flips. While the overall idea of buying a house, fixing it and selling it for profit seems simple enough, the reality of it and ambiguous process can feel quite daunting at times. I want to tell you about some very common mistakes novice flippers make that can be easily avoidable if taken into consideration.
Cutting the Budget with Sub par Contractors - Stop right here. Yes a penny saved is a penny earned. However, great craftsmanship and quality material usually adds more value to the home than it cost. When it comes to contractors, cheaper is not better. It might save you more money up front but you will be cutting on quality of work and the job will take twice as long to complete.
You are Not Alone - Unless you are a seasoned flipper, I would not recommend trying to do everything by yourself. You will lose. House flipping is a team sport and delegation is a key skill needed to win. Working with the best people will help you get better. Learn as much as you can from others. Find people who are the best at what they do and when things hit the fan or surprises occur you will have the support to come out victorious. Expect surprises.
Falling in Love with Property - Remember why you are here in the first place. TO MAKE MONEY! This is actually very common among new house flippers. It's a great feeling turning something ugly into beauty. Just remember, you do not and are not going to live there. Think profit, profit, profit. Consider the property as inventory you need to unload. All decisions are purely made based on the numbers and the bottom line.
I hope if you are planning on entering the world of house flipping, you have read everything above with the utmost seriousness. Read it three times if necessary. These are basic and crucial points to be successful with your first few flips. I want you to make as much money as you can. Good luck!