A lot goes into the process of buying, rehabbing a home, and flipping it back onto the market. You have to figure out the budget to complete the home, who will do the work, how you will secure the home, and what your backup plan is if it falls through. So to make things a little more simple and straightforward, here are four things on how successful fix and flippers think:
- Plan for Potential Risk
Not all flips are going to work out perfectly. You may find a home, have the budget planned out for the renovations and some fixes that are obvious to the eye, but what about the hidden problems that aren’t apparent till after you begin demo? By planning ahead and having a reserve fund for each flip, you can give yourself a safety cushion to fall back onto in the event a fix and flip becomes a flop.
- Imagine This Will Be Your Home
Just like when you are finding your own home to live in, you don’t want to settle just because it is a good deal. You’ll need to do the research on how good a deal is, if it is worth going into, and if it is worth your time and money. Finding a property that fits into your ideal project will always be a better fit for you than it is to find a good deal that is different from what you typically do. Sometimes a bit of adventure does offer a higher return on investment, but be sure to surround yourself with your safe investments.
- Work with Reputable People
Just like #2, you don’t want to settle when it comes to the people you choose to work with. You want to find someone who understands the industry, is experienced, and can be trusted to complete the task they are given. You also don’t want someone who won’t try to double cross you or go behind your back for their benefit only. In the end, if you are working with someone you are looking to work together as a team for the same end goal.
- Be Prepared to Finish the Work Yourself
In the event someone doesn’t complete a task, be prepared to complete it yourself or find a more reliable person to finish it. In the end, you started the work by buying the property, and finishing it yourself is always a possibility.