Perfecting The Fix and Flip:
Top 4 Mistakes To Avoid Losing Money
Phoenix house flipper Marty Boardman is a professional fix and flipper. He finds, buys, remodels, and sells and average of 30 houses per year. Along the way, he has made plenty of costly mistakes. Here is his list of top four mistakes he’s made as a fix and flipper that you should avoid when considering attempting this lucrative real estate venture:
1. Overestimating the value of a property
This is very easy to do, especially if you’re desperate for a deal. I find this happens to me because I go into the project thinking that I’m going to make house look as good, or better, than any other recent comp. Thus, the market will pay more. Of course, there can also be undisclosed environmental factors that adversely value. Like a 300 lb. barking dog living next door to my property.
2. Over remodeling the property
This happens a lot to new investors I meet. They think the property has to look as good, or better, than their own. I’m sorry but granite counter tops and plantation shutters aren’t necessary for an $80,000 track home on the outskirts of town. Formica and 2” fake wood blinds will do. Too many bells and whistles will kill your margins.
3. Under remodeling the property
Of the 4, I make this mistake the least. I tend to over remodel. However, on occasion I’ve cut a few corners. Whenever I elect to clean carpet, rather than replace with new, it seems like the house sits on the market longer, and sells for less. I mean who doesn’t love the smell of brand new carpet?
4. Underestimating the holding time
Determining how much demand there will be for a property is one of the most difficult things to do as a fix and flipper. It’s impossible to know who will want your house, and when. I flipped a not-so-special house in a not-so-special neighborhood in 27 days. It turns out the buyers had a son and daughter-in-law that lived three doors down. Conversely, I flipped a house in two weeks, bought the same model 5 doors down to flip, and it sat on the market 5 months.
If you’re interested in fixing and flipping a home, having a real estate agent to find you the right property in the right market is key to future profitable success. Don’t miss your opportunity to buy your first home, trade for a bigger home or simply downsize. Call for a free consultation at (949) 682-9930 or email us at email@example.com . If you don’t live Orange County, we are connected with great agents in different cities and countries. There’s a good chance we have connections with agents near you. So contact us and our team will help you with your real estate needs or we will introduce you the right agent for you.