The path to real estate success is definitely filled with potholes and twists and turns. If you’ve been investing in real estate for a little while now, then you probably already know that house flipping in general is actually a lot simpler and easier than a lot of people think. If you can find a good deal on a distressed property and rehab it for less than you can sell it for, then you’re in great shape. Of course, just like any other business, it’s not quite as simple as the basic definition, either.
You’ve no doubt already learned a few important lessons along the way about the surprises that foreclosure auction properties can hold and what can happen if you go over budget or a house sits stale on the market for too long. Those are all just fundamental parts of learning to flip houses for cash.
However, if you want to make every house flip go farther and do more for you, you might want to pay attention because you may be making some very common mistakes that could really eat into your profit margins.
Planning Your Flips as You Go
First, when you watch real estate investors on TV, it might look like they’re making everything up as they go along, but that’s really not the case. Basically, while it might look on our show like we do all of our rehab designs on the fly, Tarek and I actually go into every house flip with a solid plan.
After looking at everything that a house needs, I will create our rehab designs, and then we’ll call our contractors and start on a very structured list of things to do to get our house flip done on time and on budget.
Planning as you go won’t necessarily kill a flip deal, but it can end up costing you a lot more, especially for your rehabs. Taking the time to create a really good beginning-to-end plan for each property is a great way to see everywhere that you can save money and/or time so that you can improve your profit margin and sell the house faster.
(continue reading on BiggerPockets)